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Honestly, I started www.snow.ventures back in October to be an answer to this question. You have to seek diversification, one way to do it is to short the syst

Honestly, I started www.snow.ventures back in October to be an answer to this question. You have to seek diversification, one way to do it is to short the system so that people can feel safe in their particular idiosyncratic exposure. That's what we do.

mooreds 11y ago
That's a really cool idea. So you allow tech employees to hedge their career risk? Is that different than Lloyd's of London insuring Michael Flatley's dance legs ( http://money.howstuffworks.com/personal-finance/financial-planning/9-odd-things-insured-by-lloyds-of-london6.htm http://money.howstuffworks.com/personal-finance/financial-pl... )? I visited your website but from a brief perusal it wasn't clear exactly what you can hedge, other than "particular systemic and market risks".
- abcampbell 11y ago
  Well, you can think of your life portfolio being a combination of idiosyncratic risk (the particular business or unique exposures you have) and systemic risk (exposure to the broader system). For example, way too many people were piling into SF real estate, right at the time when they felt the most rich from their employee stock options. http://www.snow.ventures/blog/2016/1/13/stopbuyingsfrealestate http://www.snow.ventures/blog/2016/1/13/stopbuyingsfrealesta... We have a systemic hedge product, and are working on building out the capabilities to create unique portfolios to hedge idiosyncratic risks.
  - mooreds 11y ago
    Ah. At what level is the broader economic system that your systemic hedge helps? A city? A county? Anywhere within a reasonable car commute? The state? The country (which, for some Europeans, is all within a reasonable car commute)? From your website, looks like the systemic hedge is focused on SV right now, which makes total sense. Bet once you get it nailed there, there's plenty of blue ocean in the other tech hubs. Also, I bet you've seen this, but this book really opened my eyes to the fact that your expected lifetime income was another asset to think about diversifying: http://www.amazon.ca/Are-You-Stock-Bond-Financial/dp/0133115291 http://www.amazon.ca/Are-You-Stock-Bond-Financial/dp/0133115...
daragao 11y ago
wow! still haven't understood how your business works, but really going to read up the blog. you seem to be getting ready for winter alright! :)

mooreds 11y ago

That's a really cool idea. So you allow tech employees to hedge their career risk? Is that different than Lloyd's of London insuring Michael Flatley's dance legs ( http://money.howstuffworks.com/personal-finance/financial-planning/9-odd-things-insured-by-lloyds-of-london6.htm http://money.howstuffworks.com/personal-finance/financial-pl... )? I visited your website but from a brief perusal it wasn't clear exactly what you can hedge, other than "particular systemic and market risks".

abcampbell 11y ago
Well, you can think of your life portfolio being a combination of idiosyncratic risk (the particular business or unique exposures you have) and systemic risk (exposure to the broader system). For example, way too many people were piling into SF real estate, right at the time when they felt the most rich from their employee stock options. http://www.snow.ventures/blog/2016/1/13/stopbuyingsfrealestate http://www.snow.ventures/blog/2016/1/13/stopbuyingsfrealesta... We have a systemic hedge product, and are working on building out the capabilities to create unique portfolios to hedge idiosyncratic risks.
- mooreds 11y ago
  Ah. At what level is the broader economic system that your systemic hedge helps? A city? A county? Anywhere within a reasonable car commute? The state? The country (which, for some Europeans, is all within a reasonable car commute)? From your website, looks like the systemic hedge is focused on SV right now, which makes total sense. Bet once you get it nailed there, there's plenty of blue ocean in the other tech hubs. Also, I bet you've seen this, but this book really opened my eyes to the fact that your expected lifetime income was another asset to think about diversifying: http://www.amazon.ca/Are-You-Stock-Bond-Financial/dp/0133115291 http://www.amazon.ca/Are-You-Stock-Bond-Financial/dp/0133115...

daragao 11y ago

wow! still haven't understood how your business works, but really going to read up the blog. you seem to be getting ready for winter alright! :)