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Volatility hedge funds

Volatility hedge funds trade options, variance swaps, dispersion, tail-risk hedges, volatility risk premia, and relative-value relationships across equity, rates, currency, commodity, or credit markets.

55fund profiles

$65.8Breported gross assets

$1.2Baverage gross assets

Strategypage type

SEO research brief

What volatility hedge funds means

Long-volatility funds may buy options or convex hedges that can gain during market stress.

Short-volatility or volatility-risk-premium funds may sell options while managing drawdown risk.

Data caveat

What the filings show

The data is best read as a disclosure map. Reported gross asset value is not the same as performance, net assets, investor capital, or a recommendation. Fund rows can include offshore master funds, Delaware vehicles, feeders, and internal sleeves.

Capula Tail Risk Master Fund Limited is the largest sampled vehicle on this page at $23.5B.

Visual snapshot

Concentration and mix

Largest funds

Capula Tail Risk Master Fund Limited $23.5B Capua Volatility Opportunities Master Fund Limited $13.1B Pimco Volatility Absolute Return Fund Sp $6.2B Parallax Master Fund, LP $6.0B Ionic Volatility Arbitrage Master Fund III LTD $3.4B 1798 Bear Convexity Master Fund $3.2B

Manager concentration

Capula Investment Management Llp $36.5B

Pacific Investment Management Company LLC $7.0B

Lombard Odier Asset Management (USA) Corp $6.1B

Parallax Volatility Advisers, L.P. $6.0B

Ionic Capital Management LLC $3.6B

Gresham Partners, LLC $1.1B

Office clusters

London, United Kingdom $37.4B

New York, New York, United States $10.0B

Newport Beach, California, United States $7.0B

San Francisco, California, United States $6.0B

Chicago, Illinois, United States $1.1B

Stamford, Connecticut, United States $955.5M

Strategy guide

How the strategy works

Long-volatility funds may buy options or convex hedges that can gain during market stress.

Short-volatility or volatility-risk-premium funds may sell options while managing drawdown risk.

Relative-value volatility books compare implied volatility, realized volatility, skew, term structure, and correlation.

History and context

Volatility strategies expanded with the growth of listed options, OTC derivatives, variance swaps, and institutional demand for crash protection and alternative carry.

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Fund	Manager	Location	Gross assets

Ranked profiles

Largest funds in this group

55 rows shown

Fund	Manager	Location	Gross assets	Minimum
Capula Tail Risk Master Fund Limited Volatility	Capula Investment Management Llp	London, United Kingdom	$23.5B	$5.0M
Capua Volatility Opportunities Master Fund Limited Volatility	Capula Investment Management Llp	London, United Kingdom	$13.1B	$5.0M
Pimco Volatility Absolute Return Fund Sp Multi-strategy Volatility	Pacific Investment Management Company LLC	Newport Beach, California, United States	$6.2B	$1.0M
Parallax Master Fund, LP Volatility	Parallax Volatility Advisers, L.P.	San Francisco, California, United States	$6.0B	$2.0M
Ionic Volatility Arbitrage Master Fund III LTD Event-driven Volatility	Ionic Capital Management LLC	New York, New York, United States	$3.4B	$100.0M
1798 Bear Convexity Master Fund Volatility	Lombard Odier Asset Management (USA) Corp	New York, New York, United States	$3.2B	$100K
1798 Credit Convexity Master Fund LTD Credit Volatility	Lombard Odier Asset Management (USA) Corp	New York, New York, United States	$2.0B	$100K
Gp Low Volatility Hedged Strategies, LP Volatility	Gresham Partners, LLC	Chicago, Illinois, United States	$932.1M	$250K
1798 Multi-Asset Convexity Master Fund LTD Volatility	Lombard Odier Asset Management (USA) Corp	New York, New York, United States	$861.9M	$100K
Brevan Howard Global Volatility Master Fund Limited Volatility	Brevan Howard Capital Management, LP	St Helier, Jersey	$845.4M	$10.0M
Peters Thematic Spc Fund LTD One River Dynamic Convexity Sp Volatility	One River Asset Management, LLC	Stamford, Connecticut, United States	$784.7M	$100K
Pimco Volatility Absolute Return Offshore Fund, L.P. Multi-strategy Volatility	Pacific Investment Management Company LLC	Newport Beach, California, United States	$779.9M	$5.0M
Rimrock Low Volatility (master) Fund, Ltd. Volatility	Rimrock Capital Management LLC	Irvine, California, United States	$569.1M	$1.0M
Arrowstreet Global Minimum Volatility Esg Alpha Extension Trust Fund, A Sub-Fund Of Arrowstreet Investment Trust Volatility	Arrowstreet Capital, Limited Partnership	Boston, Massachusetts, United States	$518.2M	$100K
Global Equity Volatility Fund Volatility	Goldman Sachs Asset Management International	London, United Kingdom	$498.4M	$1.0M
Lh Pamli Global Credit Convexity Fund, LP Credit Volatility	Lighthouse Investment Partners, LLC	Palm Beach Gardens, Florida, United States	$456.8M	$1.0M
Ambrus Volatility Master Fund L.P. Volatility	The Ambrus Group LLC	Tampa, Florida, United States	$439.5M	$250K
Ahl Volatility Master Limited Volatility	Ahl Partners Llp	London, United Kingdom	$372.0M	$100K
Peters Thematic Spc Fund LTD One River Volatility Relative Value Sp Volatility	One River Asset Management, LLC	Stamford, Connecticut, United States	$158.4M	$100K
Global Volatility Voyageur Master, Ltd. Volatility	Sender Company & Partners, Inc.	New York, New York, United States	$154.4M	$1.0M
Gresham Low Volatility Hedged Strategies Offshore, Ltd. Volatility	Gresham Partners, LLC	Chicago, Illinois, United States	$148.9M	$500K
Ionic Volatility Strategies Master Fund LTD Volatility	Ionic Capital Management LLC	New York, New York, United States	$111.2M	$1.0M
Ionic Volatility Arbitrage Master Fund II LTD Event-driven Volatility	Ionic Capital Management LLC	New York, New York, United States	$88.3M	$1.0M
Lh Pamli Global Credit Convexity Fund (cayman) LP Credit Volatility	Lighthouse Investment Partners, LLC	Palm Beach Gardens, Florida, United States	$83.9M	$1.0M
Neuberger Berman Hedged Cryptocurrency Volatility Fund LLC Volatility	Neuberger Berman Investment Advisers LLC	New York, New York, United States	$67.3M	$5.0M
Lavaca Capital Convexity Fund, LP Volatility	Lavaca Capital, LLC	Houston, Texas, United States	$64.6M	$1.0M
1798 Multi Asset Convexity Fund LTD Volatility	Lombard Odier Asset Management (USA) Corp	New York, New York, United States	$57.0M	$100K
Alpha Low Volatility Fund Volatility	Alpha Wealth Funds, LLC	Park City, Utah, United States	$48.5M	$250K
Alpha Low Volatility Fund II, LP Volatility	Alpha Wealth Funds, LLC	Park City, Utah, United States	$48.5M	$250K
Core Convexity Fund, LP Volatility	Garrison Murphy Wealth Management, LLC	Delaware, United States	$46.5M	$100K
Bach Option Fund Volatility	Bach Option Limited	Hong Kong, Hong Kong	$46.0M	$1.0M
Pimco Volatility Absolute Return Onshore Fund, L.P. Multi-strategy Volatility	Pacific Investment Management Company LLC	Newport Beach, California, United States	$41.3M	$5.0M
Sia Capital Options Fund LP Volatility	Sia-Summit Investment Advisors	Southlake, Texas, United States	$40.1M	$10K
Warshaw Diversified Vol, LP Volatility	Warshaw Asset Management, LLC	Delaware, United States	$36.5M	$250K
Graham Global Investment Fund I Spc Ltd. Proprietary Matrix Enhanced Vol Segregated Portfolio Volatility	Graham Capital Management, L.P.	Rowayton, Connecticut, United States	$27.3M	$1.0M
Trailhead Options Income LP Volatility	Focus Partners Wealth, LLC	St. Louis, Missouri, United States	$25.4M	$250K
White Oaks Investment Management Low Volatility Fund Sp Volatility	White Oaks Investment Management, INC	Sarasota, Florida, United States	$24.9M	$1.0M
White Oaks Investment Management Low Volatility Fund Volatility	White Oaks Investment Management, INC	Sarasota, Florida, United States	$24.6M	$1.0M
Blue Square Digital Managed Volatility Bitcoin Fund, LP Volatility Digital assets	Blue Square Asset Management, LLC	New York, New York, United States	$18.6M	$250K
Ionic Relative Value Volatility Master Fund LTD Volatility	Ionic Capital Management LLC	New York, New York, United States	$16.9M	$1.0M
Western Alternative Strategies, L.P. Tail Risk Volatility	True North Advisors, LLC	Dallas, Texas, United States	$15.7M	$500K
Trinity Legacy Dynamic Options Fund I, LP Volatility	Trinity Legacy Partners, LLC	Houston, Texas, United States	$14.1M	$250K
Core Convexity International Fund LP Volatility	Garrison Murphy Wealth Management, LLC	Cayman Islands	$14.0M	$100K
Peters Thematic Spc Fund LTD One River Equity Overlay Dynamic Convexity Sp Volatility	One River Asset Management, LLC	Stamford, Connecticut, United States	$12.3M	$100K
Lavaca Capital Convexity Fund III, LP Volatility	Lavaca Capital, LLC	Houston, Texas, United States	$11.6M	$1.0M
Kai Long Volatility Series Volatility	Arb Fund Management LLC	Chicago, Illinois, United States	$8.0M	$250K
Kai Long Volatility Sp Volatility	Arb Fund Management LLC	Chicago, Illinois, United States	$5.6M	$250K
Kai Volatility Multi Strategy Series Multi-strategy Volatility	Arb Fund Management LLC	Chicago, Illinois, United States	$5.3M	$250K
Graham Global Investment Fund I Spc Ltd. Discretionary Enhanced Vol Segregated Portfolio Volatility	Graham Capital Management, L.P.	Rowayton, Connecticut, United States	$2.8M	$1.0M
Alpha Wealth Volatility Advantage Fund, LP Volatility	Alpha Wealth Funds, LLC	Park City, Utah, United States	$2.3M	$250K
Regents Partners Low Volatility Fund, LP Volatility	Regents Partners, LLC	Utah, United States	$1.7M	$100K
Kai Vol Neutral Alpha Gen Sp Volatility	Arb Fund Management LLC	Chicago, Illinois, United States	$1.0M	$250K
Cullen Global Dividend And Options Hedge Fund LP Volatility	Cullen Capital Management, LLC	New York, New York, United States	$728K	$500K
Arrowstreet Global Minimum Volatility Alpha Extension Trust Fund, A Sub-Fund Of Arrowstreet Investment Trust Volatility	Arrowstreet Capital, Limited Partnership	Boston, Massachusetts, United States	$725K	$100K
Kai Vol Neutral Alpha Gen Series Volatility	Arb Fund Management LLC	Chicago, Illinois, United States	$454K	$250K

FAQ

Questions about this page

Are volatility funds always hedges?

No. Some seek crisis convexity, while others harvest volatility risk premia or trade relative value. The payoff profile depends on the exact mandate.

Why do volatility funds use options?

Options allow managers to express views on implied volatility, skew, time decay, correlation, and downside convexity.

Which managers appear in the Volatility hedge funds sample?

The largest sampled managers include Capula Investment Management Llp, Pacific Investment Management Company LLC, Lombard Odier Asset Management (USA) Corp, and Parallax Volatility Advisers, L.P.. This is based on reported gross asset value in the generated Form ADV dataset.