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Overview

The Hyperion Fund is an actively managed absolute return fund that invests in S&P 500 options and futures. Our investment approach is based on a model-driven process that uses quantitative indicators. We aim to generate uncorrelated and well-defined returns, regardless of market direction, by implementing eight distinct strategies. Each strategy is carefully evaluated and weighted to achieve a desired negative correlation with major indices and the strategies being traded.

Through extensive data analysis and our experience across various market cycles, we have developed a thorough understanding of the strengths and weaknesses of each strategy. While we acknowledge the inherent risk of investment losses, we are confident in our ability to deliver a diversified portfolio of strategies that align with our objectives and offer substantial value to our investors.

In markets and in life — consistency counts

Long-term capital growth is a core part of our investment philosophy.

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Fund Portfolio

Hyperion Fund Strategies

Each component of Hyperion is diligently analyzed to enhance the overall portfolio's performance across varying market conditions.

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Market Neutral Strategies

  • Market neutral strategies aim to profit from relative value opportunities between correlated instruments or price inefficiencies, rather than directional market moves. These strategies often pair long and short positions in futures or options to hedge out broad market exposure (beta), seeking to isolate alpha from spread convergence, volatility differentials, or structural dislocations. Examples include calendar spreads, inter-commodity spreads, or index arbitrage, with positions dynamically adjusted to maintain minimal directional bias.

Option Arbitrage

  • Option arbitrage strategies identify and capitalize on mispricings across option structures, expirations, or instruments. Common approaches include box spreads, reverse conversions, volatility arbitrage, or synthetic futures vs. actual futures pricing. These strategies may involve simultaneously buying and selling options (and underlying futures) in a way that locks in a near risk-free profit, provided execution and carry costs are favorable. Advanced models are used to detect edge after accounting for transaction costs and implied volatility skews.

Long VIX Breakout

  • The long VIX breakout strategy seeks asymmetric upside during volatility regime shifts. It typically involves holding long VIX futures or call options (or VIX-linked instruments like UVXY or VIX options) when indicators suggest elevated risk of volatility expansion — such as compressed realized vol, narrowing ranges, or macro catalysts. Risk is tightly controlled during low-volatility environments, with position sizing or structure (e.g., call spreads) used to manage theta and negative carry.

Mean Reversion

  • Mean reversion strategies in futures and options aim to capture profits when prices or volatility revert to historical averages following short-term extremes. Trades may be structured using outright futures, option premium sales, or spreads that benefit from declining volatility or price retracements. These setups often use Bollinger Bands, z-scores, or historical vol percentiles to identify entry points. Positions are typically short-dated with clear stop-loss rules, and are often counter-trend by design.

Long Volatility Put Spreads

  • This strategy involves purchasing near-the-money put options on equity index futures while simultaneously selling farther out-of-the-money puts to finance the trade. The result is a put spread that profits from moderate to severe downside moves, while reducing premium outlay compared to outright long puts. It is often employed as a tail hedge or risk-off positioning tool, offering a favorable risk-reward profile during volatility spikes or equity drawdowns. Position sizing and timing are critical, especially to manage decay in calm markets.