In an environment that has sent many hedge fund firms over the edge, Capstone Investment Advisors is profiting from the huge dislocations.
The $1 billion Capstone Volatility Master fund, which was launched in August 2007, is up 6.58% this year through August, after having finished last year with a five-month gain of 19.44%. The strategy uses quantitative models to identify investment opportunities in equities, fixed income and...