AI Issue 6 2018

Acquisition International - Issue 6 2018 65 Runestone Capital Despite the generally low volatility environment, the implied volatility had 3 of its largest 20 up-moves in percentage points during May and August 2017 (since 2006). Given that Runestone Capital Fund invests on a short-term horizon these spikes provide both opportunities and risks, but the fund managed to generate strong risk-adjusted returns. The fund outperformed its key benchmark by 1.3% (CBOE Eurekahedge Volatility Relative Value Index). Going forward, the fund is set to continue on a similar path with focus on research and implementing ways to improve performance both from a risk-adjusted and absolute return perspective. The investment space in non-biased volatility is not crowded and we see significant opportunities to generate satisfying returns over the upcoming years.