Welcome to Tail Hedging

On Saturday morning, my buddy picked me up in his new Tesla.  I’m not a car guy.  I enjoy driving only on the backroads of upper Michigan during the summer.   But I have to admit that the Tesla is a pretty fantastic automobile.  The middle screen has all sorts of fancy info that other cars…

Universal Tail Risk

Ben Bernanke needs to feel like his life means something—contributed to society in some important way. Making significant contributions to the evolution of new tools of monetary policy lets him leave a mark. There is nothing unusual about this need because it is felt by many people, but perhaps not with the same intensity as…

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 manager from the 1990s.   Anyone who says the losses were unpredictable…