The Long Volatility Return Profile Can Be Confusion

In this episode, we chat with Chris Cole, founder and chief investment officer at Artemis Capital Management. Chris is an expert in long volatility strategies and has a knack for coming up with analogies to explain them.

We talk about why Dennis Rodman is arguably one of the best basketball players of all time despite scoring less than eleven points per game and what investors and individuals can take from that in terms of how they think about diversification.

We also discuss why George Lucas may have been the greatest volatility trade of all time, why forgoing gains in a long volatility strategy in the first leg down after markets drop 3,4,5% is a better long term strategy and what Chris thinks about fixed income like government bonds as a hedge against market crashes going forward.