50 Cent Fund Manager Unmasked, But He Uses More Than VIX Options To Hedge

An alternative investment manager dubbed “ 50 Cent ,” who had been reported to be accumulating a large position in CBOE VIX options used to hedge against stock market volatility, has been doing so as a regular course of action, according to a source familiar with the matter who spoke to ValueWalk on the condition of anonymity. But the VIX options are not their only form of hedging protection. The hedge is reported to have cost $89 million on the strategy, but Ruffer continues in an uncertain market environment. Hedges are typically offset by exposure in negatively correlated assets such as stocks.

VIX options in 50 Cent portfolio are only a small percentage of the hedge, which includes index-linked bonds and gold
50 Cent, a nickname given to an investor who consistently purchased VIX call options that cost 50 cents near the 20 strike price, was unmasked Thursday.

The Financial Times first reported that Jonathan Ruffer, co-founder of a $20 billion London-based discretionary fund manager for private clients, trusts, charities and pension funds bearing his name, “has been systematically buying up derivative contracts linked to an index known as the Vix, according to four people from trading departments at banks who are familiar with the trades.”

A source with direct familiarity into the execution of Ruffer’s strategy, while not commenting on the accuracy of the FT article, told ValueWalk Ruffer has been purchasing VIX calls for its core fund and clients throughout 2017 to protect against market volatility and the strategy of buying VIX call options has been done “from time to time in previous years.”


This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email support@valuewalk.com and we will get back to you as quick as humanly possible

Saved Articles

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up for ValueWalkPremium today and get our exclusive content for 35% off.

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 11/30/2019 or after next 25 20 subscribers take advantage whichever comes first – please do not share this discount with others