Deepak Gulati, chief executive officer of hedge-fund firm Argentiere Capital AG, recommends buying options to profit from widening price swings in global indexes.
“Volatility is cheap. You’re getting paid to own protection,” Gulati said today at a panel at the CNBC Institutional Investor Delivering Alpha conference in New York. Argentiere is based in Zug, Switzerland, and has $500 million in assets under management.
Gulati recommended buying options on stock indexes in Japan, Korea and China; European financial stocks; U.S. energy and technology stocks such as Amazon.com Inc. and Intel Corp.
Josh Birnbaum, chief investment officer of New York-based Tilden Park Capital Management and a panel member, recommended buying mortgage putbacks. Tilden oversees $2.3 billion in assets.