Capstone’s strategies seek to generate returns not correlated with market performance. We believe in a diversified investment approach across asset classes and geographic regions that deploys opportunistic trading strategies using a range of instruments, primarily within the derivatives space.
“We enjoy inclement weather.”
Capstone’s experienced, disciplined and collaborative team leverage our advanced infrastructure, which we believe differentiates our approach. Our infrastructure allows us to process and analyze vast quantities of data across asset classes. Our experienced portfolio managers review this information and share their insights, a collective approach that we believe grows our advantage exponentially.
“We share a lot of ideas. We think that's an advantage because we're trading a broad range of asset classes. Even though our investment pods are focused on a particular strategy or asset class, they're getting information on other asset classes from fellow pod managers.”
Capstone’s primary investment strategy is centered around global derivatives and volatility trading. Our strategy seeks to capitalize on perceived inefficiencies in the pricing of volatility within equities, fixed income, currencies, credit and commodities in the US, European, and Asian derivatives markets. Volatility products are also traded alongside other relative value opportunities often directly related to market volatility. We seek to extract alpha and non-correlated returns by dynamically employing a mix of Risk-On strategies during stable market conditions, and Risk-Off strategies designed for markets that are more volatile. By utilizing a mix of these strategies, and maintaining a flexible and liquid portfolio, Capstone seeks to take advantage of varying market environments and create diversification.
“We aim to identify and extract the structural dislocations within the marketplace that have a known alpha factor. We bring humility to our work every day. We don’t have some grand investment philosophy; it's simply that we work hard to extract those dislocations, leveraging the infrastructure that we built. We go towards those dislocations - we’re drawn to those anomalies.”
Capstone developed its customized solutions platform in December 2010 to create volatility and derivatives-based solutions in collaboration with our investors. Strategies include: Equity Replacement, Tail Risk Protection, Cross Asset Volatility Harvesting, Longer Dated Relative Value Opportunities, Dispersion and Bespoke Tactical Opportunities.