CapStone Investments
CapStone Investments is a company.
Active
Updated: ·
Financial History
Total Raised
N/A
Valuation
N/A
Leadership Team
Key people at CapStone Investments.
CapStone Investments is a company.
Key people at CapStone Investments.
Capstone (formally Capstone Investment Advisors LLC) is a forward-thinking global asset manager specializing in derivatives and complementary strategies to generate alpha across market cycles, managing $11.8 billion in assets as of November 1, 2025.[3][5] Its mission centers on partnering with clients to deliver uncorrelated returns through flagship multi-strategy offerings like CGM and customized solutions, leveraging a collaborative culture, proprietary technology, and rigorous risk management.[2][3] The firm focuses on volatility arbitrage, derivatives trading across asset classes and geographies, with over 115 investment professionals and 10 global offices supporting its philosophy of innovation in overlooked opportunities.[3][5]
Founded as a proprietary trading firm, Capstone has evolved into a hedge fund structure emphasizing persistence in derivatives markets, influencing the ecosystem by pioneering educational initiatives like the Global Volatility Summit (2009) and Volatility Research Forum (2015).[2][5]
Capstone was established in 2004 through a management buyout led by Paul Britton OBE, who acquired Mako Global Derivatives' U.S. operations, initially operating as a proprietary trading firm headquartered in New York City's 7 World Trade Center.[2][5] Britton, drawing inspiration from the post-9/11 rebuilding of the city, positioned the firm there; it expanded with a London office in 2006 and launched its multi-strategy fund CGM in 2007, shifting to accept outside capital in a hedge fund model focused on volatility strategies.[2][5]
Pivotal moments include surviving the 2008 financial crisis—despite VIX-related losses from Lehman's bankruptcy—thanks to a major European investor, and subsequent growth like Capstone Solutions in 2010 for custom mandates, plus new offices in Milan (2024) and Tokyo (2024).[5] Over 20 years, key partners like Britton have driven evolution from derivatives trading to a broad, collaborative platform.[2][3]
Capstone rides the wave of persistent demand for volatility and derivatives strategies amid market uncertainties, from geopolitical tensions to interest rate shifts, where traditional assets falter.[2][5] Its timing aligns with post-2008 regulatory changes and rising complexity in global markets, enabling alpha in under-explored areas like volatility arbitrage.[5] Favorable forces include expanding derivatives markets, institutional appetite for uncorrelated returns, and tech-driven pricing tools that lower barriers.[2][3]
The firm shapes the ecosystem through education (e.g., Volatility Research Forum convening pensions and endowments) and innovation, influencing how investors approach risk and alpha in multi-asset environments.[2]
Capstone is poised for growth by deepening Asia/Europe presence via recent offices and scaling proprietary tech amid rising volatility from AI-driven markets and economic flux.[3][5] Trends like derivatives innovation and custom mandates will propel AUM expansion, potentially surpassing $15BN, while collaborative culture sustains edge over siloed competitors.[2] Its influence may evolve toward leading volatility think tanks, solidifying as a go-to for institutions seeking cycle-proof strategies—echoing its origins in crisis resilience to pioneer the next era of alpha generation.[2][5]
Key people at CapStone Investments.
