Mar
14
Hedge Fund Sees 30% Gain by Betting Only on Tomorrow, Literally
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Runestone Capital invests only in one-day U.S. volatility
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Runestone targets average annual return of more than 20%
This hedge fund is only looking one day ahead.
That delivered a 30 percent return in 2016 for the London-based Runestone Capital Fund, which crunched more than 700 variables to develop a quantitative model for trading U.S. equity index volatility.
“We trade with a one-day horizon as predicting volatility long term is completely random,” Rune Madsen, founder and portfolio manager of the $17 million fund, said in an interview on Monday…
Hedge Fund Sees 30% Gain by Betting Only on Tomorrow, Literally
