LJM Funds

Asset Managers (Alternatives)

LJM Funds Management is an alternative investment management firm specializing in volatility strategies. For 19 years, LJM ’ s investment management team has been managing portfolios of options on S&P 500 futures that seek to profit from market volatility. Volatility strategies don ’ t rely on stocks and bonds going up to provide positive returns, and because they ’ re uncorrelated to equities and fixed income investments, volatility strategies can add diversification to a traditional portfolio.

Phone: 312 – 756 -0001

Email: aauerbach@ljmfunds.com

Address: 440 S. LaSalle St. Suit 2301

Chicago, Illinois 60605


Volatility Investment Strategies — Disparate Performance; Disparate Uses

While most advisors are familiar with the popular managed-volatility and low- volatility funds, these are just the tip of the iceberg. There are a vast number of volatility strategies — such as short volatility, long volatility, covered call, volatility arbitrage, etc. — that pursue completely different strategies, perform very differently from one another, and serve different roles in client portfolios. And, the numb er of these investments has grown dramatically in recent years.

As of March 14, 2017, there were 56 managed volatility mutual funds and another 54 funds in Morningstar’s new Option Writing Category. More than half of all these funds launched in just the last three and a half years. As these types of investments have moved from the sole purview of institutional investors to more mainstream investors, we set out to educate advisors on the seven most common volatility strategies. We examined how they’ve performed over time, their risk and correlation, and how to use them in client portfolios. We created a white-paper, Volatility Investment Strategies — Disparate Performance; Disparate Uses, and held a webinar to review the findings that had almost 300 participants.

Category Finalists

Key Business Leader

Anish Parvataneni
Chief Portfolio Manager

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