London-based firm 36 South Capital Advisors is starting a hedge fund that will target Australian institutions that are seeking protection from market downturns and additional returns.
36 South said in a recently-released statement that the fund will launch on April 1 with seeding from an undisclosed Australian institution. The unnamed institution will invest up to 30% of the fund in a portfolio designed to provide protection against volatility in the Australian financial markets, while the remaining 65% will be invested in 36 South’s flagship global long volatility multi-asset class fund.
36 South explained that it is launching the new fund “at a time where volatility across asset classes is relatively cheap which provides the opportunity to capture significant convexity.”
Launched in 2011, 36 South is a self-described “leading volatility and tail risk fund manager.” Its Black Swan Fund returned 204% in 2008.