Volatility-Surfing Alpha Fund (VSAF)

What is VSAF?

• Our VSAF (Volatility-Surfing Alpha Fund) aims to provide income generation and capital appreciation by selling options on a basket of low-correlation, leveraged ETFs that reflect the US stock market, semiconductors, small-cap dynamism, long-duration rates, and Chinese big companies. The strategy is constructed to capitalize on short-term volatility, long-term market growth, interest-rates, and macro regime shifts.

Strategy Overview

• Approach: Systematically sell puts and covered calls on highly liquid ETFs.
• Invest collected premiums in short-term U.S. Treasuries (T-Bills).
• Use 20% hedge via inverse ETFs to mitigate downside exposure.
• Philosophy: Profit from market volatility while keeping risk and capital requirements conservatively managed.

Target Investor Profile

• Sophisticated retail investor who seeks alpha and stable return without taking excessive risk.
• High-income, active trader, conservative with margin, who wants volatility income, low drawdowns, and simplicity.
• Family Offices: steady income, limited downside, capital-efficient without leverage, scalable.
• Alternative yield seekers looking for reliable uncorrelated assets.

 Key Benefits

• Growth-focused without reckless leverage.
• Systematic hedging reduces drawdowns.
• Capital efficiency through T-Bill collateral.
• Adaptable to different market regimes.