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 Performance in Hedge Funds

Hedge fund is a vehicle where the correlation to the markets is effectively hidden by hedging the main risks, but you're also taking typically liquidity risk or other types of risks. It's effectively a short put on the S&P. The drawdown seems low, but it's effectively you're getting paid for tail risk.

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