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U.S. Hedge Fund To Use Equity Options

17 Mar 2003

Newly minted alternative investment manager Ash Capital envisages buying and selling over-the-counter equity options in its soon to be launched Empyrean Fund, a long/short equity hedge fund employing quantitative and fundamental analysis strategies. Rauf Ashraf, managing director in Boston, said the firm will buy and sell calls and puts on an opportunistic basis. The fund, which will launch with seed capital of USD25­USD35 million, will invest across industries, he noted.

Fundamental analysis studies data that might be expected to impact the price or perceived value of a stock, with fundamentals including economic factors, industry-specific trends, capital market conditions, and company-specific data and qualities.

Banc of America Securities is the fund's prime broker and will likely be the counterparty to options trades, according to Ashraf.

17 Mar 2003