Fund-of-Funds Lighthouse Partners Pulled the Plug on a Vol Bet Weeks Before It Would Have Paid Off
Lighthouse Partners, a $13.1 billion fund of funds, pulled the entirety of its capital from a volatility arbitrage hedge fund mere weeks before the strategy was likely set to pay off in March 2020. According to multiple sources, DeepBlue Asset Management — founded by Daniel Benchimol in 2019 – had been seeded, via a separately managed account, with approximately $150 million of Lighthouse’s money. But in late February 2020, the tail-risk manager saw assets decline by over 10 percent in a matter of days. By mid-March, Lighthouse had instructed Benchimol to liquidate the separately mana...
Source: institutionalinvestor.com