Investment Strategies


The Kai Volatility Multi Strategy Fund uses a proprietary asset allocation model to dynamically allocate between the firm’s three funds on a monthly basis.

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.

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.

Cem Karsan

Cem Karsan is the Founder, CIO, and Managing Principal of Kai Volatility Advisors. He is responsible for portfolio construction, and firm-wide management, as well as its Head of Research and Risk Management. Mr. Karsan formed Kai Volatility Advisors after over two decades of experience building industry-leading derivatives businesses. At its peak, during the Great Financial Crises, Mr. Karsan’s proprietary market-making firm, Precision Capital Management, represented approximately 13% of the daily volume of S&P 500 Options. In 2010, Mr. Karsan divested his stake in Precision Capital to found his own investment management firm, now Kai Volatility Advisors. Mr. Karsan holds a Bachelor’s degree from Rice University with a triple major in Mathematical Economic Analysis, Policy Studies & English. He also holds an MBA from Northwestern University’s Kellogg School of Management, with an emphasis in Analytical Finance and Management & Strategy.

*Past performance may not be indicative of future results.