Hedge fund veteran shuns volatility wagers

DUBAI: Stephen Diggle, who co-founded a hedge fund that made US$2.7bil on volatility wagers during the global financial crisis, isn’t betting on similar fluctuations now even as central banks begin to roll back years of extraordinary stimulus.

Governments and central banks worldwide now see themselves as “guardians of the capital markets” and will always be ready to provide liquidity to prevent a repeat of the unprecedented price swings a decade ago, said Diggle, the chief executive officer of family office Vulpes Investment Management.