Derivative asset management firm Harvest Volatility Management has bolstered its team with its two latest hires–Garrett Paolella and Troy Cates, who both previously served as Horizons ETF’s head of ETFs and head of trading, respectively.
Harvest Volatility Management, which serves more than $13 billion in client assets, primarily manages private fund strategies. However, the firm took its first maiden voyage into the mutual fund world in January with the introduction of its three open-ended investment vehicles: Harvest Edge Absolute, Harvest Edge Equity, and Harvest Edge Bond.
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Harvest Edge Absolute seeks to deliver returns with relatively low volatility, minimal interest rate risk, minimal credit risk, and no correlation to equity markets.
Harvest Edge Equity seeks to deliver returns highly correlated to the S&P 500 Index through a portfolio of U.S. equity securities, equity index ETFs, and other investment vehicles by implementing its collateral yield enhancement overlay strategy (CYES) that utilizes relatively short-dated S&P 500 Index option call spreads and put spreads. The Harvest Edge Bond seeks to deliver returns highly correlated to the Bloomberg Barclays U.S. Aggregate Bond Index by also implementing the CYES strategy.
Paolella, who will serve as Harvest Volatility Management’s managing director, will lead the launch of new public funds, such as ETFs, open-ended mutual funds, closed end strategies and Undertakings for Collective Investment in Transferable Securities (UCITS) vehicles. Cates will serve as Harvest Volatility Management’s executive director and will work alongside Paolella to help develop new strategies.
Paolella and Cates spent two years at Horizons ETFs after Horizons acquired their previous firm, Recon Capital, in November 2016. In their new roles, Paolella and Cates will report to Harvest’s co-founders, Rick Selvala and Curt Brockelman.
“Garrett and Troy are seasoned professionals with significant industry experience in global markets who have a proven track record of launching ‘40 Act strategies and bringing them to market quickly and efficiently,” said Selvala. “We welcome their deep expertise and extensive relationships as we identify new ways to provide our clients to access our investment strategies.”
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