Our strategy can be (and has been) successful in both high and low vol environments. With the VIX above 20 for over a month now, we are aching to get to launch date to take advantage of some unique characteristics we are seeing in the relationship between equities and options. A high VIX probably won't affect the returns much on the equities side, but there are ways to extract more return (at no higher risk) out of the options when volatility shows certain patterns.
Think of a low vol environment as an orange, and a high vol environment as a watermelon. Now think of our fund as Godzilla, who is very thirsty right now. Godzilla squeezes the orange with one hand, and the watermelon with the other. He will get more juice out of the watermelon.
We squeezed mostly oranges over the last four years and it was a fine thing, we did very well. Now it's time to mash some watermelons.
John Galt would be very proud of this analogy, by the way; it was he who coined the phrase "mastodon burgers".
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