Hedge Funds Shorting Volatility ‘Forced to Puke’ as Stocks Drop
- Option Solutions lost up to 65 percent amid stock selloff
- Spike in volatility is set to continue, a hedge fund firm says
Canaccord's Dwyer Says 'We're Buying the Opportunity Volatility Is Creating'
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Hedge funds betting that stocks will surge and volatility is likely to remain muted were hit the hardest as an equity-market rout wiped about $1.25 trillion from U.S. shares.
One of Man Group Plc’s main funds plunged on Monday as market trends suddenly reversed, according to a person with knowledge of the matter. Option Solutions LLC, a hedge-fund that trades equity options, lost as much as 65 percent after it was forced to sell holdings overnight.