Kai Asset Management Hires QVR Portfolio Managers
The hires precede the planned launch of two KaiConvex volatility-focused funds on December 1, 2026.
Updated on Nov. 9, 2026 in Investing
Kai Asset Management, an affiliate of Kai Wealth, has hired former QVR Advisors portfolio managers Noel Smith and Scott Maidel. The firm will launch two KaiConvex funds on December 1, 2026.
Why it matters
Kai says the next two years will bring more risk, and that the traditional mix of stocks and bonds is no longer working. The firm is positioning its strategy around downside protection built from exchange-traded options.
Kai Wealth manages approximately $500 million, while QVR grew from a $100 million single-client SMA to $1.5 billion in assets. As of November 1, client portfolios were moved into a heavily hedged posture, and the funds' performance has not yet been reported.
The players
Noel Smith
Smith is chief investment officer of Convex Asset Management and previously managed volatility-focused money as a senior portfolio manager at QVR, with roughly 30 years of experience trading volatility and a founding role at Third Millennium Trading in 1996.
Cem Karsan
Karsan founded Precision Capital, which at its peak handled about 13% of daily S&P 500 options volume, and hosts the podcast U Got Options from the Cboe trading floor in Chicago.
The details
Kai builds downside protection from exchange-traded options rather than buying structured notes from banks, and offers custom options overlays that hedge large holdings. The firm also structures loans against those holdings using box spreads.
Timeline
Jan. 1, 2025: Kai Wealth became a registered investment advisor.
Nov. 1, 2026: Client portfolios were moved into a heavily hedged posture.
Dec. 1, 2026: KaiConvex Hedged Equity and Carry Neutral Tail Hedging funds launch.
Market Dynamics
The hires extend a trajectory set by volatility-focused firms such as QVR and Precision Capital, which built large positions in S&P 500 options markets. Kai is applying that options-based approach to retail and institutional portfolios as it moves away from traditional stock-and-bond allocations.
Investors considering options-based downside protection could see new fund vehicles available starting December 1, 2026. Those with existing stock and bond allocations may weigh how hedged strategies compare with their current holdings.
The takeaway
Investors evaluating hedged strategies should compare costs, hedging mechanics and past performance before allocating capital. The firm's view that risk will rise makes downside-protection structures a question worth examining closely.
What happens next
The KaiConvex Hedged Equity and Carry Neutral Tail Hedging funds are scheduled to launch on December 1, 2026.
Further reading
For more on strategies like these, explore Investing coverage.
Source note: This article includes information reported by The Manila times.
