Fortress Investment Group LLC hired two former hedge fund managers from ArtPARA_BREAK_SENTINEL_9f8e7d6c

Fortress Investment Group LLC hired two former hedge fund managers from Artradis Fund Management Pte, Stephen Diggle’s former Singapore-based hedge fund firm which closed in March, reported Bloomberg this week. David Dredge and Andrew Wong joined as co-chief investment officers of Fortress’s Convex Strategies Group and will be based in Fortress’s Singapore office, which opened in January. Julian Ings-Chambers has also joined as head of business development and investor relations. Dredge and Wong will run a new tail risk fund. Commonly referred to as Black Swan funds, they seek to profit from low-probability events: on a bell-shaped curve for normal distribution the highest probability events are found at the apex of the curve, becoming less probable as you move to the outer edge, or tail. The Convex Strategies Group uses trading instruments like options that are often effective in high volatility environments. Adam Levinson, co-chief investment officer of the firm’s flagship global macro funds, was quoted at a recent hedge fund conference in Singapore as saying that Europe was destined for a “significant recession” regardless of how it navigates the debt crisis, be it positively or not. Apparently a volatility-based convexity fund will also be launched next year according to Levinson.