Please join the author of the CFA Institute Quarterly Proceedings article titled, "Volatility: The Market Price of Uncertainty" (Q1 2014) for a focused detail on the current market environment and the current pricing of risk:
"Today's securities markets are pricing in yesterday's crash, the known unknown, rather than tomorrow's unknown unknown. To understand volatility as an asset class is to value the forward expectation of uncertainty, which is as much a function of human psychology as it is an expression of mathematics. Since the financial crisis, the pricing of volatility derivatives has undergone wide-scale changes that reflect classic behavioral biases. Not only is volatility an asset class, but in fact, it may end up being the most important asset class for institutional portfolios over the next decade. A strategy of "crisis alpha," defined as the strategic acquisition of mispriced volatility, is a powerful way to navigate future uncertainty."
Speaker - Christopher Cole, CFA
Christopher Cole founded Artemis Capital Management in 2008 after working five years in capital markets and investment banking at Merrill Lynch. Working in both Los Angeles and New York he provided structuring and quantitative modeling for the execution of bonds, credit derivatives, pension strategy, and product development in the public sector.
At Merrill Lynch he structured over $6 billion in transactions for clients such as the L.A. Department of Water and Power, L.A. Unified School District, the Commonwealth of Puerto Rico and the State of California.
Prior to Merrill Lynch, Mr. Cole worked at the pension consulting firm Wilshire Associates in Santa Monica where he analyzed public portfolios with over $10 billion in assets.
An active investor since college, Mr. Cole took an interest in quantitative and systematic trading and, as an experiment, began trading using his computer models and personal capital. His decision to form a fund came after growing his initial investment of $100k to approximately $1 million in under two years.
Mr. Cole graduated Magna Cum Laude with a B.A. from the University of Southern California and is a Chartered Financial Analyst. He is also NASD licensed with the Series 7 and Series 63.