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The real money in options is trading OTC with counterparties who don't care about pricing.

And virtually nothing else has happened in any other risk class.

In hindsight of course they should. But what if the world remained quiet for another 6 months? Then they would look lazy. The vix being overly crowded was very well known in the vol community. But their mandate was to sell vol. they really had no choice and the tsunami of vol covering took them out.

They can’t reduce their position even if vol was low. No client is going to pay them to hold cash even if that’s the right position. That’s the difficult part of being a fund manager. They have to put money to work or they will be redempted.

The problem in feb was that only the deep downside puts got bid. Any risk management assumption they probably held (likely gamma hedge) did not work because the markets weren’t down enough. It was extremely isolated. I did well that day because I was long Spx vol that went up but none of my...

That why Henry killed all his wives? The wiki said that she and him were nazi sympathizers but from what I read the controversy started before that. He abdicated in 1936 and expressed his views in 1937.

The OP is a new nick of stealth vendor who tried to push a xiv/vxx strategy. He claimed it earned 40%/year but looking at the fundseeder (or whatever website) he was playing games with his denominator.

I’m surprised that Winton pays less than Goldman (average comp per person).

Wasn’t Wallis Simpson a nazi sympathizer? I think that was the controversy.

Credit will come with covenants. Credit will come with maturities where you have to pay back your borrowings. Typically it’s cheaper to borrow from the fixed income market than issue stock, which is why so many companies have borrowed money to do stock buybacks. If a company is doing...

What he’s saying is that 31.5 points and he’s bankrupt. And -10 points probably means a permanent inpairment of capital.

She just wants a British green card.

Can you post your citation for these returns?

There is no arbitrage. The difference in scale will be offset by the different notional you have to trade to remain market neutral. Add to that that you will have several crosses to to get back to dollars, you will incur tons of transaction costs.

Only if they closed out their risk. That’s the problem with black swan strategies. You always have to be long the tail even when it gets expensive.

I find that hard to believe as he’s a big fx trader and he’s earned more dollars for clients than any other hedge fund other than bridgewater (who needed like 10x the aum).

Financial footnotes don’t tell you want a ceo said at a conference yesterday. Nor do financial footnotes tell you what is happening in another stock that is affecting the price of your interested stock.

Actually it makes total sense why he's underperforming. The best performing stocks in the last few years have been stocks that look terrible under fundamental analysis (amazon, tesla, nflx, etc). His strategy would be to short those stocks and buy others (which haven't performed as well in this...

None of this makes any sense.

Of course a stock has a value if you hold it as ownership. You may not be able to control the company operations but you are entitled to your share of earnings of the company. One way to look at it is: warren buffets public holdings. He doesn’t get involved (though he could) and he gets...