Key Takeaways
- • Kai Asset Management, an affiliate of Kai Wealth founded by Cem Karsan, will launch two KaiConvex funds on December 1, 2026, Hedged Equity and Carry Neutral Tail Hedging.
- • Kai hired former QVR Advisors portfolio managers Noel Smith and Scott Maidel to run its institutional business, with Smith as co-chief investment officer and Maidel as head of institutional solutions.
- • Kai now manages approximately $500 million and has moved client portfolios into a heavily hedged posture as of November 1, 2026.
- • Kai is extending hedging tools previously used for family offices, including custom options overlays and box-spread-structured loans against holdings, to venture funds and institutions.
Summary
Kai Asset Management, an affiliate of Cem Karsan's wealth advisory and turnkey asset management platform Kai Wealth, has hired former QVR Advisors portfolio managers Noel Smith and Scott Maidel to run its institutional business, according to a GlobeNewswire release dated November 9, 2026. The firm will launch the first two funds under the KaiConvex brand on December 1. The expansion is positioned to help investors navigate what Karsan expects to be a period of potentially severe market risk over the coming years.
Smith, previously chief investment officer of Convex Asset Management, was a senior portfolio manager at volatility-focused firm QVR. Maidel was a QVR partner who ran the hedge-fund business and helped manage its largest strategy. The release states that during Maidel's tenure QVR grew from a $100 million single-client SMA to over $1.5 billion in AUM. Smith is a founding member of Third Millennium Trading, established in 1996, and was the seed investor behind GETCO, which at its peak handled about a fifth of U.S. stock trading.
Two KaiConvex strategies will launch on December 1. Hedged Equity seeks strong risk-adjusted returns by balancing upside capture with downside mitigation, using option prices to capture how the market expects returns to be distributed. Kai believes the growth in option selling and income funds has created a structural pricing opportunity for hedged beta and convexity. Carry Neutral Tail Hedging is designed to protect against a range of stock-market declines while limiting the cost of protection, seeking maximum cash-efficient convexity. Kai states that most investors buy downside protection from banks as structured notes, whereas Kai builds it from exchange-traded options at a fraction of the cost.
Kai Wealth, a Chicago-based registered investment advisor founded by Karsan that became an RIA on January 1, 2025, serves high-net-worth families, family offices and institutions and runs a TAMP for other advisory firms. The release states Kai now manages approximately $500 million. Kai Asset Management is a trade name of Kai Volatility Advisors LLC, registered with the CFTC as a commodity trading advisor and a member of the National Futures Association.
Karsan, Kai's founder and co-chief investment officer, said investors are heading into a very volatile period after the midterms. Kai expects the next two years to bring more risk, arguing that the traditional stock-bond mix is no longer working and that geopolitics adds to the danger. As of November 1, the company has moved client portfolios into a heavily hedged posture. Karsan previously founded and sold Precision Capital in 2010, an options market maker that at its peak handled about 13% of daily S&P 500 options volume.
Smith, previously chief investment officer of Convex Asset Management, was a senior portfolio manager at volatility-focused firm QVR. Maidel was a QVR partner who ran the hedge-fund business and helped manage its largest strategy. The release states that during Maidel's tenure QVR grew from a $100 million single-client SMA to over $1.5 billion in AUM. Smith is a founding member of Third Millennium Trading, established in 1996, and was the seed investor behind GETCO, which at its peak handled about a fifth of U.S. stock trading.
Two KaiConvex strategies will launch on December 1. Hedged Equity seeks strong risk-adjusted returns by balancing upside capture with downside mitigation, using option prices to capture how the market expects returns to be distributed. Kai believes the growth in option selling and income funds has created a structural pricing opportunity for hedged beta and convexity. Carry Neutral Tail Hedging is designed to protect against a range of stock-market declines while limiting the cost of protection, seeking maximum cash-efficient convexity. Kai states that most investors buy downside protection from banks as structured notes, whereas Kai builds it from exchange-traded options at a fraction of the cost.
Kai Wealth, a Chicago-based registered investment advisor founded by Karsan that became an RIA on January 1, 2025, serves high-net-worth families, family offices and institutions and runs a TAMP for other advisory firms. The release states Kai now manages approximately $500 million. Kai Asset Management is a trade name of Kai Volatility Advisors LLC, registered with the CFTC as a commodity trading advisor and a member of the National Futures Association.
Karsan, Kai's founder and co-chief investment officer, said investors are heading into a very volatile period after the midterms. Kai expects the next two years to bring more risk, arguing that the traditional stock-bond mix is no longer working and that geopolitics adds to the danger. As of November 1, the company has moved client portfolios into a heavily hedged posture. Karsan previously founded and sold Precision Capital in 2010, an options market maker that at its peak handled about 13% of daily S&P 500 options volume.
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