Kai Volatility Advisors

Kai Volatility Advisors, formerly known as Aegea Capital, is a recognized leader in volatility investing. The firm specializes in volatility strategies, which are designed to profit from fluctuations in the level of volatility in the market. They have created a non-correlated and scalable investment vehicle that takes advantage of the structural mispricing inherent in option indices worldwide, while offering the superior transparency and liquidity that today’s investors demand. The firm also focuses on several equity-focused relative-value long volatility and tail hedge funds and specializes in proprietary analysis on directional flow indicators in the volatility space and exploiting their informational asymmetry to enhance trend-following strategies.


  • The Kai Volatility Multi Strategy Fund.

    Uses a proprietary asset allocation model to dynamically allocate between the firm’s three funds on a monthly basis.

  • The Kai Long Volatility Fund.

    Specializes in a scalable, long-convexity, long-skew, long-volatility strategy in US equity option markets that seeks to provide tail protection with embedded structural alpha.

  • The Kai Dealer Flow Alpha Gen Fund.

    Specializes in a tactical trading strategy designed to systematically exploit macro flows driven by street positioning. 

  • The Kai Vol Neutral Alpha Gen Fund.

    Specializes in a market-neutral, volatility arbitrage strategy designed to systematically exploit structural mispricing in US equity option markets, while mitigating the risks inherent to such strategies.

Kai Volatility Advisors' investment approach is characterized by: