A tail hedge is product or process that protects against a tail event.
A tail event is very large and rare event that causes harm in a non linear way.
0 0 Facebook 0 0 Twitter 0 0 Linkedin 0 0 Reddit Tiger Global Management, one of the largest and most successful hedge funds over the last decade, is in the news because of severe losses. Chase Coleman is a Tiger Cub, the name given to the protégés of Julian Robertson, the famous macro fund…
0 0 Facebook 1 1 Twitter 0 0 Linkedin 0 0 Reddit A properly designed tail risk hedge cost effectively mitigates risk. In March of 2020, the US government shut down a small portion of the US economy, when it mandated risk measures to protect against the spread of COVID-19. The predominant sectors that were…
Forrest Gump and the SS Jenny
Universal Tail Risk
In 2022, tail hedging with options and CTA will compete for returns.