Volatility: The hedge funds are making a lot of money

“There are so many ways to make money playing volatility, and volatility systems typically perform best when everyone else is confused.”[i]  Said Michael Corcelli, managing member of Alexander Alternative Capital LLC, a Miami-based hedge fund.

Hedge funds bet on fluctuations in the price of securities (volatility funds), currencies, gold, as well as on fluctuations in the price of stocks and assets, including commodities, oil and minerals.

According to The Wall Street Journal[ii] a hedge fund of Bridgewater Associates LP had score gains of more than $3.5 billion, in the past week.