Efficient, unbiased, responsible investment.
 
 

Volatility investments that are unique, unbiased, and secure.

Talton Capital Management affords investors the benefits of volatility trading, but without the risks that are often associated with it.

With our proprietary prediction model and built-in risk controls, Talton can give you the confidence to invest in this emerging, high-return asset class.

 
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Hunter Young

Founder & Managing Partner.

Masters in Financial Mathematics.

Northwestern Finance Certificate.

 
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Dr. Euan Sinclair

CIO & Managing Partner.

PhD Theoretical Physics.

Author of Volatility Trading.

 
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Jeffrey Bryk

Business Development.

Founder, Tempus Fund.

MBA Northwestern.

 

Why invest with Talton?

 
 

Efficient, unbiased investment

Talton invests via a robust model that’s consistent, objective, and is constantly improving. Models are less susceptible to the bias, overreaction, and inefficiency that can affect traditional (opinion-based) investments.

Reduced risk from market events

Like all investments, volatility is influcenced by major market events. Many large investors still don’t account for these risks (even after 2008), but Talton operates on a particularly risk-averse model. With proper hedging, Talton provides investors with the benefits of volatility trading plus protections against broader market.

Extra diversity, unique returns

Investing in volatility, generally, can improve the diversification of a portfolio--and Talton’s model takes this benefit even further. Given its flexibility to trade the volatility of any asset, Talton’s model provides a truly unique return stream.

 
Talton was founded in 2012 by Hunter Young, in Chicago. In 2016, Dr. Euan Sinclair joined to help build out Talton's quantitative research operations.

Talton was founded in 2012 by Hunter Young, in Chicago. In 2016, Dr. Euan Sinclair joined to help build out Talton's quantitative research operations.

Quantitative Volatility Strategies

Talton Capital Management, LLC is an investment and research firm that aims to achieve uncorrelated, differentiated, and hedged absolute returns by harvesting divergences between implied and realized volatility across asset classes. We continually apply our proprietary predictive model, which tells us at any given time and over any given volatility environment whether to be long, flat, or short (and in what size). Given the natural asymmetric returns generated by derivative products, we’ve built in multi-tier risk management solutions that allow flexible portfolio adjustments during mild risk events and maximum drawdown stops in the most severe cases. This is how we generate alpha.

We believe that the variance premium is highly predictable relative to other asset classes and that the implied volatility surface is a strong predictor of future realized volatility.

Talton offers its strategies through two private investment vehicles: The Talton DelTheta Fund and Talton's CTA offerings. The DelTheta Fund is a pooled investment vehicle that operates strictly in the equity space, while the CTA gives our clients exposure to volatility in the futures space.

 

 

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The Talton Blog

Company updates, market recaps, and assorted musings about volatility and quant investing.

See all blog posts »

 
 

Option Pricing Models

Jul 11,2019

Some models are wrong in a trivial way. They clearly just don’t agree with real financial markets. For example, an option valuation model that includes the return of the underlying as a pricing input is trivially wrong. This can be deduced from put-call parity. ...

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More on Learning

Jun 11,2019

Learning is hard. Sometimes it is hard in a trivial way. It can be hard because the subject matter is hard. Quantum field theory is a difficult subject and it is understandable that learning it won't be easy. However, learning is also hard for a more concerning reason. Humans don't change their opinions when confronted with facts, even when they directly contradict the opinion. ...

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Risk, Probability, and Psychology

May 1,2019

“Risk depends on the skills of a specific trader and is all of the things outside our control. So traders with different sources of edge will have different remaining risk factors. If I have an edge in volatility prediction and you don't, volatility is my edge and your risk. This is true in most of life. For a heart surgeon, doing a bypass is a low risk operation. For me, it would be murder.” ...

Read More »

 
 

Contact Us

Talton is currently open to accredited investors. If you are an accredited investor who is looking to learn more about Talton and the benefits of adding active volatility investing to your portfolio, please use this form to send us a note. 

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