(Bloomberg) Rune Madsen is having a pretty good week. His Runestone Capital Fund has managed to avoid losses even as global markets slipped into spasm after U.K. voters opted out of the European Union. The $10 million volatility hedge fund wagered on U.S. equity swings via instruments such a futures, S&P 500 Index options and exchange-traded products.
Long volatility has been roughly the only place to hide in a market downdraft that threatens to lop $2 trillion from global equity value in the space of a few hours. The strategy involves owning anything that gets more valuable as share prices widen, a good bet on a day when the MSCI All-Country World Index is down 3 percent.
