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> Insurance is gambling that reduces your risk, rather than increases your risk. Aren't hedge funds (nominally) doing the same thing?
by webmaven 6y ago
> Insurance is gambling that reduces your risk, rather than increases your risk.
Aren't hedge funds (nominally) doing the same thing?
- vkou 6y agoYes, but hedge funds have a larger counterparty risk. Their hedge is more likely to not work out, than your insurance is to fail to pay up. (And this aspect of insurance is quite heavily regulated.)