Credit Suisse VOLARIS is rolling out a suite of hedge funds together with HOLT, another Credit Suisse subsidiary best known for its stock evaluation methodologies. Karlheinz Muhr, head of VOLARIS, said there will be two types of hedge fund: a delta-hedged long equity strategy with an overlay that will drive down volatility; and a market-neutral strategy.
The delta-hedged strategy's asset pool is broken down into a core and a satellite. VOLARIS is running a covered call-writing program over the core portfolio that reduces the dispersion of returns. The satellite, which will be more volatile, will invest in smaller capitalization stocks and calls.
