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Good for her. When you think about it, using options to bound your risk and reward has similar results to deleveraging. I made my highest returns over the last 18 months (about 27% pa) simply selling call options over my few individual stock positions in a market that is basically going nowhere. Someone who is financially naive might jump to the conclusion that this is a risky strategy. But, of course it is actually a more conservative strategy than simply holding the stocks outright.
Still, there seems to be some contradictions in her strategies that would lead to higher cost. Why pay a premium for a put option to protect against volatility and loss while at the same time pay a premium to a hedge fund to achieve greater volatility and gain? This doesn’t seem like alpha to me. Seems more like someone who buys both life insurance and an immediate annuity (essentially mirror contracts) and pays the insurance company a fee and margin for both. Sometimes, the best thing to do is nothing.
Dancing will get you arrested in the USA
Five reasons Canada's four Western Provinces is the safest quadrant on our Planet...
I was worried that you had forgotten your usual pathetic sales pitch for Montreal-based hedge fund managers, but there it was, right at the end despite having nothing to do with the story. You're nothing if you aren't predictable, Leo.
What's truly pathetic is how US institutions are consistently blindsided by consultants who shove them in the same hedge funds and fund of funds. Time to think outside the box!!
Yes it is Leo. Hedge funds are always popular with lazy shit investors that HOPE that they can turn a profit.
Outside of the box in any situation right now means buy gold, silver and FARM land. Secondary investments in canned goods and shotguns.
Time to think outside the box!!
Wow, just over a week ago you were trumpeting Micheal Sabia, a retread white collar welfare bum...how the fuck is that thinking outside the box?
WSJ reports this morning that Goldman lost 98% if Libya's Sovereign Wealth Fund -- so it could be worse at Harvard.
"Lost" or "Stole"?
More likely they stole, since we know GS never loses when trading their own money.
good post this.
what will be interesting is the bull short position and/or puts on the s&p500. Which i think should correct at a 20% or more (then Qe3). Commodities should correct hard, but long term...yeah i can roll with that. India GDP is weakening, that and china could fall into a tech recession.
watching risk FX crosses ala CAD and AUD
I agree with all of this chump666
Charts looking to confirm a stallout in risk
Gold looking to go a bit higher
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