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With Nowhere to Go, This $64 Billion Asset Manager Bets on VIX

  • DNB unit sees emerging markets as cheapest stock region
  • Fund manager is betting against U.S. and Japanese stocks
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With massive stimulus inflating stocks and bonds, the tactical allocation team at Norway’s largest bank has opened a bet on volatility for the first time.

The unit at DNB ASA is hedging its mixed funds by keeping duration short and buying volatility index contracts for the first time, according to Torkild Varran, chief executive officer of DNB Asset Management, who oversees about 530 billion kroner ($64 billion).