Antti Ilmanen - Unexpected Returns (S5E8)
Flirting with Models
00:00
Tail Hedging Strategies Are Very Costly, Even the Good Ones
We have 35 years of data since index options were created. That data tells a very clear story, which has got a very natural, theoretical rational according to this logic. I much prefer tail hedging strategies, which are less costly. And there are good studies of it. So, but the base gess that we show is those strategies have lost money. tal criti hen 20 13 mitar,. many parts there was, you should include 87, which i included later. But ultimately he was saying that ou really need two thousand years of data when you have got these types of fat taled strategies that rely on rare events.
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