2min chapter

Michael Covel's Trend Following cover image

Ep. 1136: Nigol Koulajian Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

CHAPTER

The Importance of Relative Risk

Hedge fund fees are very high compared to returns and generate alpha. Effectively when the market is down, it's the relatively we're doing better initially but eventually at some point, hedge funds start losing money faster and faster. The less constant the risk is, the more option, the short option like they are, the more alpha you generate.

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