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> The S&P most certainly outperformed Melvin on a risk-adjusted basis due to this single drawdown alone. The S&P had a 54% drawdown in 2008.
by dcolkitt 6y ago
> The S&P most certainly outperformed Melvin on a risk-adjusted basis due to this single drawdown alone.
The S&P had a 54% drawdown in 2008.
- jabberwcky 6y agoWhich could have been anywhere between an 81% to 810% drawdown in a typical leveraged strategy. Very few levered positions would have survived it without stopping out or completely blowing up, but an unlevered position absolutely could have -- and most (long term buy and hold) did
- dcolkitt 6y agoI'm not sure what you're talking about. Most hedge funds did significantly better than the S&P in 2008. They were down, but nowhere to the same degree.