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B. G., Opalesque Geneva:

A manager who met great success during the GFC betting on volatility is resurrecting a famed long volatility hedge fund.

In May 2002, Stephen Diggle and Richard Magides launched the Artradis Barracuda Fund in Singapore with US$4m. The long volatility hedge fund and its two more aggressive spin-offs went on to great success during the crisis of 2007-08, returning about US$2.7bn to investors between launch and 2009 and gathering enough AuM to become the largest hedge fund in Asia.

In 2010, after experiencing some losses and identifying a sustained period of high liquidity and low volatility, they decided to close the funds and return all monies to investors, ending up "being one of the few multi-billion hedge funds never to have gated investors capital."

Diggle, who has been working in finance since 1986, told Bloomberg in 2018 that he still was not betting on fluctuations similar to 2007-08. Governments and central banks worldwide now see themselves as "guardians of the capital markets" and will always be ready to provide liquidity to prevent a repeat of the unprecedented price swings a decade ago, he said. Increased trading by computers and algorithms will also smother fluctuations.

The managers are now expecting a volatility......................

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