Financial Times FT.com

Volatility: Good time to sail with the wind

By Brendan Maton

Published: October 2 2006 03:00 | Last updated: October 2 2006 03:00

Volatility should be considered as an equity sector in its own right, alongside financials, industrials and mining stocks, according to Emmanuel Bourdeix.

The negative correlation between rising markets and volatility means the latter can act as a kind of hedge, says Mr Bourdeix, who heads the derivatives and convertibles desk at Credit Agricole Asset Management in Paris, where he also runs a fund specialising in European equity volatility.

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