Financial Times FT.com

Market insight: Storm watchers may reap the whirlwind

By Gillian Tett

Published: June 7 2007 19:23 | Last updated: June 7 2007 19:23

Last year a hedge fund manager in London was browsing a scientific journal when he noticed a report about unusually high levels of volcanic ash floating in the Atlantic.

This, apparently, convinced him that hurricane activity would be low in 2006. So his fund created a strategy to bet on this – and duly reaped vast profits when storm levels did turn out very mild last year.

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