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From Kirsten Bischoff, Opalesque New York:

Launching in July 2007 with internal funds and the strength of a single seed donor New York-based MM Capital waded directly into the oncoming financial crisis with $6m in assets under management. In the midst of historic industry wide asset declines the firm has managed to raise their asset levels to approach $50m (up 700%), and serves as a reminder amidst the asset raising doom and gloom that solid performance does indeed draw investor attention.

MM Capital's flagship fund utilizes a volatility arbitrage strategy and trades options on equities and ETFs, focusing only on exchange traded options within the US. The strategy works to exploit the price differences that occur largely because the entities trading stock options are very different than those trading the indices. "Index and ETF options are mostly bought and sold by large institutions that need to hedge themselves against a large move," says Managing Principal Maximilian Kogler.

"We pick a subset basket of an ETF, buy the options on those underlying companies and hedge them out completely so there is no exposure to directionality. Then we sell the options on the actual ETF, and this is done in a mathematically correct way?so we are not exposed to directionality but we are exposed to movement."

The firm Kogler and MM Capital co-founder Markus Hausberger started the firm in 2005, bringing onb......................

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