History and Core Values of Runestone Capital

What is Runestone Capital

Runestone Capital was founded in 2014 in London to identify unique investment opportunities with superior risk adjusted performance. With over 28 years’ of investment experience, Founders, Rune Madsen and Rasmus Andersen have worked together since 2008 at Morgan Stanley and Credit Suisse, London until they closed in 2019. The firm specialized in quantitative and qualitative strategies based on volatility. The firm’s back-tested and proprietary active management models are designed for institutional and private investors seeking alpha-driven returns. Rune Madsen is now working as a managing director at Oppenheimer London where he employs many of the same strategies as he did at Runestone. Runestone Capital was an operational entity from 2014 till 2019.

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Why did we create Runestone Capital

We founded Runestone Capital to freely express our individual investment views without the restrictions of an investment bank. We wanted to be judged on our own merit, not a centralized view. After building a successful wealth management franchise over 15 years, we wanted to create our own firm, to solely express our own views. Due to our conviction in our back-tested, proprietary model, we solely funded the firm with our own capital and we believe that this is the largest opportunity we have ever seen in our investment careers, hence the creation of Runestone Capital.

What is the Runestone Capital Fund

Runestone Capital Fund is an absolute return fund that aims to generate in excess of 20 percent net annualized return over a cycle, regardless of market conditions. The strategy buys or sells US equity index volatility based on statistical probabilities. It has been back tested from January 1st 2006 and been in fund format since 2015.

The strategy is long or short US equity index volatility based on the models and portfolio manager discretion. The strategy is centered on proprietary models, which was built based on our practical, real-life trading experience. The products traded are VIX related products, VIX futures, exchange traded notes, and exchange trade funds that are linked to the VIX future. We have been trading volatility for clients and our own money since 2009. The Funds has monthly investment redemption cycles and are denominated in USD.

 


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Rune Madsen

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Rune Madsen is a co-Founder of Runestone Capital and is the lead Portfolio Manager of the Runestone Capital Fund. He graduated in 1999 from the University of San Francisco with a Bachelor of Science in Business Administration and a Major in Finance (Cum Laude and a 3.85 GPA in Finance).

Rune has over 17 years’ experience at international investment banks. He began his career in 1999 with Salomon Smith Barney (part of Citigroup) in San Francisco, as an college intern and in 2000 as a broker. In 2002, he joined the London office as First Vice President of Investments advising alternative and long-only investment managers, family offices, banks and broker dealers on U.S. equities and derivatives. In 2006, he joined Morgan Stanley in London as Vice President before becoming an Executive Director in 2007, where he advised on European equities, high yield bonds as well as U.S. equities and derivatives. In addition, he advised and developed volatility trading strategies for institutional clients which helped spearhead the sales and trading coverage of family offices. In 2014 he joined Credit Suisse in London as a Director during their takeover of the Morgan Stanley division, where he was the head of the Norwegian and Danish specialist desk.