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Bailey McCann, Opalesque New York for New Managers: London-based volatility hedge fund Runestone Capital has launched its first US fund. The systematic strategy will buy or sell US equity index volatility on a one-day forward basis based on statistical probabilities. The fund offers investors access to VIX as an asset class, trading VIX futures, exchange traded notes, and options.
"The strategy has delivered returns in very different market conditions as the strategy is agnostic to being long or short and to pre-set market conditions," said Rune Madsen, CIO of Runestone Capital in an interview.
The strategy was launched in May of 2015 and has been building a track record largely on friends and family investments. But, outside interest is growing and assets under management at the firm have increased from 12 million to over 50 million in the last six months.
The new fund, called Runestone Capital U.S. Fund, will run pari passu to the original Malta based SICAV, named Runestone Capital Fund. Its first day of trading is set to be Oct 1, 2017. The fund's capacity is currently projected at $500m based on the size of the current VIX market.
"The market for VIX strategies is more significant in the US than Europe, which is why it made sense for us to launch the strategy as a US fund," Madsen says. The firm has added to its marketing and sales team in advance of the launch. Accor...................... To view our full article Click here
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