Crane treats volatility as its own asset class which profits the most from extreme market declines.
  • While our Principal Investments strategy is a longer term strategy designed to provide outsized returns upon exits of concentrated control positions from a strategic sale or IPO, the Trading strategy has shorter holding periods and is designed to monetize volatile/declining markets.
  • By creating a portfolio of CB’s, BW’s and other derivative securities which are net long volatility, the primary focus of the Trading strategy is market neutral positions which treats volatility as an asset class in both the broader index level and single stock exposures.
  • The objective is to take advantage of differences between the implied volatility of the option, and a forecast of future realized volatility of the option’s underlying security.
  • While our Trading strategy is focused in the US market, our edge comes from the deep industry knowledge we acquire through our Principal Investments which are in industries that straddle both the US and dynamic Asian economies.
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