There is no doubt that index arbitrage creates volatility.

"It creates uncertainty and volatility, which they can make money on."

Orders to buy or sell large amounts of stocks are expected, which could create unusual volatility in the market.

We cannot create dramatic volatility for other school districts.

At times this can cause wide ranging valuations in the market, creating volatility.

"So when the reasons for low rates are removed, it creates enormous volatility and each bit of news raises concern," he said.

Leaks can undermine policy initiatives, poison relationships and create unnecessary volatility in financial markets.

That creates volatility when the hedge funds unwind the positions.

"Everywhere, that creates tremendous volatility and calls forth the deepest frustrations," he said.

That creates volatility, which is very good for us, because we can apply our long-term logic.