Σ1

If you’ve no heard of BitCoin (BTC, $BCOIN) you’re missing out on a long-shot currency bet opportunity.  The risk: value could plummet to zero.  The reward: If all goes perfectly you could buy a sizable piece of the next reserve currency.   Likely something in-between will happen.  Read more about BitCoin.

As I read “How I Became a Quant“  it seems that quants are more often born than made.  Of course it takes time to time to become a quant in the same way it takes time to become a doctor, lawyer, or engineer.  The difference is that one does not exactly just get a degree [...]

In today’s investment environment, if one wants to make any positive return on investment (and avoid negative inflation-adjusted returns) one must accept some risk.   CAPM presents a simplified model of risk as embodied by, sigma, or standard deviation.  Interestingly, the basic CAPM risk model does not encompass the concept of utility. It turns out that [...]

The PowerShares S&P 500 BuyWrite ETF (PBP) and iPath CBOE S&P 500 Buy/Write Index ETN (BWV) both seek to track the BXM Index.  Each advertises a 0.75% expense ratio/annual fee.  The BXM Index reports an “18 years [history], generating a return comparable to that of the S&P 500 with approximately two-thirds of the risk”.  Should [...]

I ask myself what value-adds will distinguish the Σ1 Fund from the numerous fund out there. Here are a few key distinguishing points:

1. Innovative, industry-leading transparency for a hedge fund.
2. Far lower overall expenses than typical for a hedge fund.
3. Far lower investment minimums, by far, than a typical hedge fund.