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Alternative Market Briefing

Marquart Capital: There is one way to buy a stock, but 100 ways to long it

Thursday, June 11, 2015

amb
David Marquart
Benedicte Gravrand, Opalesque Geneva for New Managers:

New York-based startup Marquart Capital Management, LP, will launch its first product on July 1, 2015. It is a Delaware-domiciled, hybrid volatility fund with an option-based strategy designed to exploit inefficiencies in the derivatives markets, using top-down and bottom-up analysis.

David Marquart, who is personally invested in the fund, set up the alternative asset management shop in December. Before that, he was portfolio manager at Quad Capital, First New York Securities, and trader at Capstone Investment Advisors, where he designed and implemented volatility arbitrage, hybrid volatility, and "vol-of-vol" strategies. Volatility arbitrage is a trading strategy that attempts to exploit differences between the forecasted future volatility of an asset and the implied volatility of options based on that asset.

Marquart tells Opalesque that in his strategy, "unlike traditional volatility arbitrage funds that isolate the volatility component of the option price, we monetize both the volatility and the directional, or delta component of that option price. The beauty of an option i......................

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