Wed, May 25, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Alternative manager Melanion Capital celebrates record volumes in dividend futures trading on Eurex

Tuesday, October 08, 2013
Opalesque Industry Update - Melanion Capital, Paris, the first alternative manager to specialize in investment in dividend futures, has welcomed the announcement from Eurex of record volumes in the exchange’s dividend-based derivatives segment. According to Eurex, the world’s leading exchange offering dividend derivatives, September’s monthly trading was a record high of 989,000 contracts representing an extraordinary increase of 52 percent year-on-year.

Dividend derivatives trading divides into indices and single stocks. During September, open interest in Eurex dividend indices grew to over 3.5 million contract and open interest in single stock dividend futures grew to some 1.6 million contracts helped by a spike in the volume of Vodaphone dividend futures changing hands as the Company announced the sale of its large stake in Verizon Wireless.

“Because they’re simple, easy to understand and answer investors’ needs to hedge their dividend exposure, dividend futures have become one of the few highly successful new contract segments launched by derivatives exchanges in the past few years,” said Jad Comair, Founder and Chief Invesment Officer of Melanion Capital. “The large volume increases we’re witnessing in the sector are good for our investors, not only because of an increase in liquidity but also because they will encourage further diversification as new exchanges enter the marketplace and new contracts are launched.”

Melanion Capital’s unique business model aims at capturing the opportunities in these derivatives while seeing them become the asset class of the next decade,” Comair concluded. “We firmly believe that Melanion Capital embodies a ‘first mover advantage’ in this sector and we look forward to being able to demonstrate our strengths and our ability to create alpha, on behalf of investors, in a wide range of market conditions.”

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. West Virginia objects to Alpha Natural sale to hedge fund[more]

    From AP/Heraldcourier.com: West Virginia's environmental authority has filed an objection to the proposed $500 million sale of Alpha Natural Resources' assets to a hedge fund, arguing that the deal could leave the state holding hundreds of millions in reclamation liabilities. The Register-Hera

  4. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  5. Mitch Petrick leaves Carlyle as his hedge fund unit suffers losses while assets expand[more]

    Komfie Manalo, Opalesque Asia: Mitch Petrick will be leaving Carlyle Group as head of its hedge funds unit overseeing about $34bn as of March 31, after several funds under his management suffered losses while assets expanded, various media reported. Petrick joined Carlyle in 2010 and was a former