Steve Diggle, a former hedge fund manager renowned for amassing billions during the 2008 financial crisis, is making a comeback in the trading world.
What Happened: Diggle’s family office, Vulpes Investment Management, is aiming to raise up to $250 million from investors in the first quarter of 2025. These funds will be allocated to a hedge fund and managed accounts designed to exploit market volatility, Bloomberg reported on Monday.
Diggle, whose firm generated $3 billion between 2007 and 2008, is employing artificial intelligence to pinpoint companies in the Asia-Pacific region that are at high risk of financial instability. This tactic is part of a larger strategy to benefit from both market downturns and stable periods through strategic stock investments. Diggle’s return to volatility trading marks his most significant move since shutting down his previous firm, Artradis Fund Management Pte, in 2011.
"The number of fault lines out there today are greater, and the chances of something going wrong are significantly greater, but risk prices have come down," Diggle said.
The new fund will concentrate on potential market disruptions, including stretched U.S. stock valuations and geopolitical tensions. Diggle’s team includes seasoned professionals like Robert Evans, who will act as the main portfolio manager. Although Diggle will not be involved in daily trading, he will provide guidance on risk management strategies for the fund.
Why It Matters: The timing of Diggle’s return to the trading arena coincides with a period of heightened market volatility and potential corrections. Recent reports indicate that U.S. stocks might be approaching a correction due to recent fluctuations. According to experts, the stock market is showing signs of a potential correction, following a rebound after a significant selloff. The S&P 500 is just 3.6% shy of its all-time high, despite a nearly 3% drop after the Federal Reserve updated its inflation and interest rate outlook for 2025.
Additionally, market expert Jay Woods has warned of a possible 10% correction in the equity markets, pointing to factors like the growing divergence from “Magnificent 7” stocks and President-elect Donald Trump’s tariff plans. These developments underscore the potential for significant market shifts, making Diggle’s strategic return particularly noteworthy.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
