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Alternative Market Briefing

New York hedge fund finds volatility arbitrage key to non-correlation: +37.1% total return during 84% of hedge fund down months

Thursday, May 08, 2008

Kirsten Bischoff, Opalesque New York: Titan Capital Group, a New York based firm with approximately $550m in assets was formed in 2001 by Russell Abrams and runs 5 products, all utilizing a volatility arbitrage strategy. While all are based under the same underlying relative value strategy, four of them are positioned with an additional defensive profile.

Relative Value Fund: Titan Global Relative Value – trades all markets – with a focus on the US and Asia and with exposure to equity, commodity, fixed income and FX volatility.

Defensive Funds: Titan Global M – Trades all markets and allows for exposure to equity, fixed income and FX volatility Titan Global – Trades all markets - exposure to equity volatility Titan US – Trades equity volatility in the US market only, using both index and single stock options Titan Asia – Trades equity volatility in the Asian markets, primarily Japan, Hong Kong and Korea, using primarily index options.

Titan’s March funds reported net performance between +0.64% and +2.06%, bringing the first quarter of 2008 to +3% to +7% and 12 month performance to between +16% and +32%. The firm recently received a Eurekahedge nomination for the Best Asia Relative Value Hedge Fund Award. In the midst of this, Opalesque had a chance to speak with two members of the Titan team R......................

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