Strange behaviour in option markets

Finance text books, reams of academic research and practitioner experience all point to the existence of a “volatility risk premium” (VRP), which is a foundational principal of option selling strategies.

Read More

Introducing XARO

Gopi Karunakaran introduces the ActiveX Ardea Real Outcome Bond Fund (Managed Fund) (ASX:XARO).

Read More

How to profit from interest rate volatility

One way to profit from interest rate volatility is to get directional calls right, ahead of a large move in rates. Sadly, we have yet to come across anyone who has been able to consistently get these directional calls right.

Read More

Webinar: Introducing ActiveX

Watch Ardea Portfolio Manager Gopi Karunakaran and Fidante Investment Specialist Sam Morris as they discuss the ActiveX Ardea Real Outcome Bond Fund (Managed Fund).

Read More

Why do you pay attention to financial forecasts?

It’s that time of year when inboxes get flooded with 2019 economic and financial market forecasts. As the CFA institute points out, at the beginning of 2018 the median analyst forecast for the S&P 500 calendar year return was +10.3%. The actual result ended up being -6.2%.

Read More

Market inefficiency is a growing opportunity in fixed income

In a theoretically efficient fixed income market, closely related bonds (or derivatives) with similar risk characteristics would always be priced the same. In reality, these prices persistently diverge from each other, which means fixed income markets are inefficient.

Read More