Kai Volatility Advisors


Investment Strategies

Dealer Flow Alpha Gen

The Kai Dealer Flow Alpha Gen Fund specializes in a tactical trading strategy designed to systematically exploit macro flows driven by street positioning. The fund does this by directionally positioning across underlying equity indices and their volatility surfaces.

Volatility Neutral
Volatility Neutral Alpha Gen

The Kai Vol Neutral Alpha Gen Fund specializes in a market-neutral, volatility arbitrage strategy designed to systematically exploit structural mispricing in US equity option markets, while mitigating the risks inherent to such strategies.

Long Volatility
Long Volatility

The Kai Long Volatility Fund specializes in a scalable, long-convexity, long-skew, long-volatility strategy in US equity option markets that seeks to provide tail protection with embedded structural alpha.

Why Kai?

Cem Karsan formed Kai Volatility Advisors after over two decades of experience building industry-leading derivatives businesses. From 1999 to 2002, he worked as a volatility trader as part of RBC Dominion Securities’ Derivatives Arbitrage Group. From 2002 to 2005, he worked under renowned Wall Street investor John Mulheren at Bear Wagner Specialists, where Cem helped expand the firm’s fledgling derivatives arbitrage business into a competitive force within the industry. In 2005, Cem took a select group from the firm’s trading arm and founded his own proprietary market making firm, Precision Capital Management, specializing in equity index volatility arbitrage. The firm expanded the products it traded, becoming a significant SPX market maker reaching, at its peak, a high of ~13% of daily volume*. In 2010, Cem divested his stake in Precision to found AEGEA Capital, the precursor to Kai Volatility Advisors.

*Past performance may not be indicative of future results.

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