Alphabet Management LLC has decided to promote Nelson Saiers as a full partner and co-manager member as the latter lead the volatility hedge fund to a 27% increase since July, 2010. Alphabet Management LLC, which is a renowned name in options bets on the swings in stocks and other assets, has decided to change its name to Saiers Capital LLC. The decision was confirmed in a letter that was sent to the investors. This promotion of Saiers will be effective from April, 2013 and he will continue to work as the Chief Investment Officer as well. The founder of the company, Jason Adler will focus more on the non-investing activities of the company. Incidentally, Adler started this hedging firm in 2007 with a capital of $11 million. The company currently manages more than $565 million and this year it returned around 9%, according to insider sources familiar with the assets and performance matters of the fund. The average annual return of the company has been 17.3% since its inception 5 years ago.
Adler stated that it was Nelson’s leadership which helped the company to expand its asset classes significantly and the geographical coverage. Adler added that with strategies outlined by Nelson, the company has been able to triple its assets under management. The names of the investment funds of the firm, Alphabet Offshore Ltd and Alphabet Partners LP will be unchanged.
Before joining Alphabet, Saiers used to work as a Managing Director for Deutsche Bank AG’s Proprietary Derivatives Trading Department. He had held trading positions in other big companies such as Susquehanna International Group LLP and UBS AG as well. At an age of 23, he earned a doctorate in Mathematics from the University of Virginia.
Peter Lambrakis, who works as the Head of Equity Derivatives Trading Department of Citigroup Inc. stated that he considers Nelson to be one of the brightest people that he has seen. Lambrakis added that Nelson has great skills which are required to be successful in this industry. He particularly praised Nelson’s superb mathematical skills, relationship identification and connecting to situations.
Earlier in 2012, a group of 11 investment professionals were hired for Alphabet Management LLC. The team included Scott Saiers, Nelson’s brother. Incidentally, Alphabet Management uses its own set of technology and pricing models to monitor option markets, before entering into a trade.