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One time for Nassim Nicholas Taleb who's ALL OVER this in a deeply interesting and entertaining way. "The Black Swan" is great at going in on such a weirdly obv
by jrm4 4y ago
One time for Nassim Nicholas Taleb who's ALL OVER this in a deeply interesting and entertaining way. "The Black Swan" is great at going in on such a weirdly obvious-but-not point.
- paulpauper 4y agoUnlike other hedge funds, Taleb's/Universa's records, like CAGR, are sketchy. Good records do not exist except what has been 'leaked' to the media by PR. It's not like Bridgewater in this regard. His barbell OTM put strategy almost certainly did badly in 2022, because of the failure of the Vix index to spike and the decline of the S&P 500 being orderly. https://greyenlightenment.com/2022/10/08/tail-hedging-strategies-are-struggling-during-the-2022-bear-market/ https://greyenlightenment.com/2022/10/08/tail-hedging-strate... So both parts of the barbell lost money, which is not supposed to happen. This is why you have to be warry of individuals and strategies that are overhyped. If a strategy is getting a lot of positive press, it likely means it's saturated. If a lot of quants are buying the same options for the same hedging purposes, who is going to sell them?
- jrm4 4y agoJudging Taleb by a hedge fund's performance, even if it's one of his, is really missing the point entirely.