Volatility Arbitrage
We seek to capitalize on inefficiencies in the pricing of volatility within equities, fixed income and commodities, in both domestic and international markets.
While we mostly operate in the options and futures markets we may also trade related products to extract additional alpha from our volatility arbitrage. Our goal is to be able to take advantage of varying market conditions from a generally market-neutral perspective.
Within this framework, the strategy's activity is concentrated in the following areas.
- aRelative value across the volatility surface
Positions across strike and tenor where implied volatility, skew or term structure differ from what realized behavior and observable order flow would suggest. - bDispersion and correlation
Index volatility relative to that of its constituents, and correlation structures where the market's pricing of diversification within a basket appears inconsistent. - cCross-asset volatility
Relative pricing of volatility between equity, fixed income, currency and commodity markets. - dConvexity
Structures that benefit from periods of market stress, sized and financed so that they contribute to the portfolio during dislocations.
- Markets
- Equities, fixed income and commodities, domestic and international.
- Instruments
- Listed options and futures, and related products where appropriate.
- Orientation
- Generally market-neutral. Directional exposure is hedged unless it forms part of the investment thesis.
- Risk
- Each position is assessed on its sensitivities, margin requirements, liquidity and behavior under adverse scenarios, individually and in the context of the overall portfolio.
Alternative Real Estate
We seek to invest in opportunistic deals that reflect our view on real estate trends: flexible spaces, remote working, digital nomads, co-living, tiny houses and commercial to residential conversions.
We look for opportunities in all five continents, especially in attractive locations with both high appreciation and attractive cash flow potential. Each asset is evaluated on its own operating conditions, including local regulation, planning considerations and execution risk.
- Themes
- Flexible workspace, co-living and small-format housing, commercial-to-residential conversion, locations favored by remote workers and digital nomads.
- Geography
- Global, with an emphasis on locations combining appreciation potential and current cash flow.
- Approach
- Opportunistic, asset by asset.
Global Opportunity
We invest in private equity, venture capital and long/short equity strategies that meet our investment criteria.
Our goal is to combine multi-asset diversification with broad international exposure to profit from global trends and hedge single-asset or regional risk. Particular attention is given to emerging and frontier markets, where differences in market structure, valuation or access may create an advantage for investors able to operate there.
- Scope
- Private equity, venture capital and long/short equity.
- Geography
- Global, including emerging and frontier markets.
- Approach
- Selective. Investments are made against the firm's criteria rather than a fixed regional or sector allocation.
Structures and vehicles
Investors can access Liberfield Capital's strategy offerings via different structure and vehicle types, based on their investor type, liquidity profile and investment horizon. Terms are discussed directly with qualified investors. Existing investors can reach reporting and documents through the investor portal, which is by invitation only.
Investor portal