Iron Condor managers?

X

xsellside

Can anyone recommend a manager that runs an Iron Condor strategy? I’m looking to implement this strategy as part of an allocation for a high net worth client. I came across one hedge fund, but they are a bit small and they are charging 1 and 20. My firm cannot do this in-house. What are some things I should be looking for in a manager that runs this strategy? I need a manager that runs $50 million or more to avoid my client becoming too much of the fund's AUM.

Thanks!
 
Quote from xsellside:

Can anyone recommend a manager that runs an Iron Condor strategy? I’m looking to implement this strategy as part of an allocation for a high net worth client. I came across one hedge fund, but they are a bit small and they are charging 1 and 20. My firm cannot do this in-house. What are some things I should be looking for in a manager that runs this strategy? I need a manager that runs $50 million or more to avoid my client becoming too much of the fund's AUM.

Thanks!
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How about spending a small amount and learning how to do it yourself, or seeing that your client can learn to do it him/herself.

My Rookie's Guide to Options goes into great detail about how to trade and manage iron condors.

But if you are seeking a professional, they all want to take 20%. that's a VERY bad deal.

Mark
http://blog.mdwoptions.com/options_for_rookies/
 
See how they did in Sept/Oct 2008. Some very large CTA's that only do IC's lost their shirt (40%-60%) in those two months. Make sure they can precisely define their risk otherwise it's just picking up nickels in front of a steamroller.
 
Quote from DWV:

See how they did in Sept/Oct 2008. Some very large CTA's that only do IC's lost their shirt (40%-60%) in those two months. Make sure they can precisely define their risk otherwise it's just picking up nickels in front of a steamroller.
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What are some examples of how a good manager would define and manage risk?
 
Quote from xsellside:

What are some examples of how a good manager would define and manage risk?
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Look at their track record and that will tell you a lot. Ask what is the maximum loss expected in a given month and ask how they came up with that number. Assume worst-case scenario because that day WILL come. You really need to find out how they did last fall - that volatility killed most IC guys so if they survived that is a good sign.
 
Here is the problem with IC managers. They will sit there and tell you that they have a winning percentage of 90% or something. Well guess what? When you sell are selling way out of the money calls and puts you SHOULD win 90% of the time. I agree with the guy who said learn to do it yourself. Its a WAY better deal. Start with some reading though.

Mark
www.option911.com
 
Quote from option911:

I agree with the guy who said learn to do it yourself. Its a WAY better deal. Start with some reading though.

Mark
www.option911.com
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As much as I want to, my firm's structure and the relationship dynamic with the client would simply not allow this.

Doing an IC for my own benefit is another story, but I need a 3rd party for this deal.
 
There is no alpha in a "set and forget" condor strategy. The majority of index IC funds had 40% losses or more in the trailing 12 months.

WTF would you think it a good idea to allocate to anyone trading DOTM verticals?

1+20 is pretty standard. I can't imagine anyone taking this on for less. Ansbacher is probably the only manager who's trading >$50MM, but he's primarily a seller of skew hedged with index futures [weak synthetic straddle].
 
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