Category: Hedge Funds
-
A tale of two risk managers; trend following vs. hedging with put options
Let’s get right to it. Which do you prefer? What you see in the chart is The S&P 500 stock index, which is an unmanaged index of 500 or so stocks, weighted by their capitalization… Read More
-
By and large, the stock market is correlated with consumer sentiment
I’ve shared some observations about investor sentiment this past week as sentient indicators and surveys have reached an extreme level of optimism. When sentiment reaches an extreme, we should prepare for it to swing the… Read More
-
Implied volatility as measured by VIX indicates a volatility expansion in the near term
Implied volatility as measured by VIX indicates wider prices in the near term. The CBOE Volatility Index VIX has increased to 20, which is it’s long term average, suggesting prices will spread out to 20%.… Read More
-
Is volatility setting up for an expansion?
I’m not going to be surprised if we see a VIX volatility expansion this week along with the range of stock prices spreading out. There are plenty of potential catalysts that could drive volatility and… Read More
-
Putting my short-term technical analysis tactician hat on and hedging off equity risk
I’m dialing in to look at shorter-term technical analysis as my risk management systems are suggesting a risk of a stock market decline is becoming elevated. Zooming in to shorter time frames, the U.S. stock… Read More
-
Asymmetry in the CBOE Index Put/Call Ratio suggests hedging
I pointed out yesterday the Stock market internals are signaling an inflection point. On a short term basis, some internal indicators are suggesting the stock market is at a point I expect to see a more significant breakout… Read More
-
Global asset allocation takes a beating in 2018
Most financial advisors and financial planners recommend to their clients some type of global asset allocation. Their global asset allocation models usually include a range of bonds, U.S. stocks, and International stocks. Some may include… Read More
-
Investment management can take many years of cycles and regimes to understand an edge.
It takes at minimum a full market cycle including both bull/bear markets to declare an edge in an investment management track record. But we also have different regimes. For example, each bull market can be different as… Read More
-
VIX Trends Up 9th Biggest 1-day Move
About a week after a hedge fund manager who is popular with the media but has a poor track record of managing risk said “please stop talking about the low VIX”, it gains 44.4% in a… Read More