Taleb fund and how it profited

Discussion in 'Wall St. News' started by cdcaveman, Aug 29, 2015.

  1. londonkid

    londonkid

    sorry to be a brown nose but boy I love your posts. quality content.
     
    #51     Sep 3, 2015
  2. Maverick74

    Maverick74

    Huh? I said a million in principal with a 5% annual rate or simply say i* with the NPV being 1,000,000/(1 + i*).

    I'm not sure you understood my statement, a FRA is just a forward rate agreement.
     
    #52     Sep 3, 2015
    palawan, londonkid and samuel11 like this.
  3. That fund and all others like it are way down in the last several years despite making whatever they made this month. I find it laughable that the media is so irresponsible to parade this guy out for making a billion dollars without telling people how many billions were lost bleeding money month after month waiting for the black swan event to happen.

    Any traders who have any experience at all or any backtesting what so ever already know there is no point trying to profit from tail risk. You lose way more money in the long run hedging it out completely than you do just making nice little profits month after month and occasionally taking a small hit when shit hits the fan. When the VIX goes from 13 to 53 in a week you're supposed to lose a bit of money, that's trading.

    You should hedge enough so you can make a nice safe orderly stop-loss out when black swan events happen. Don't hedge so much that you profit from them, because you will definitely bleed more money in the long run doing that.
     
    #53     Sep 6, 2015
  4. Maverick74

    Maverick74


    This is not true. The fund was up huge in 2008, 2011 and this year. They had modest single digit losses 2012 to 2014. They actually sell a lot of premium. And they don't just trade tails in the index. They make money on large moves in rates, currencies, indies, metals, etc. And the purpose of the fund is not to be a standalone investment but rather a means for investors to stay "long" and even have more long exposure then they normally would have otherwise since they own the insurance. You obviously neglected to watch the videos. That's your prerogative.
     
    #54     Sep 6, 2015
    palawan likes this.
  5. And if you choose to be impressed by pathetic funds that can't even beat a low cost index fund let alone anyone who knows what they are doing that is your prerogative.
     
    #55     Sep 7, 2015
  6. Maverick74

    Maverick74

    Has nothing to do with being impressed. You just need to get your facts straight.
     
    #56     Sep 7, 2015
    palawan likes this.
  7. i was long dotm spx puts for .20, sold them for 8.00, that's how...
     
    #57     Sep 7, 2015
  8. Visaria

    Visaria

  9. Butterball

    Butterball

    Apparently there's no market environment they can lose money is there. What a bunch of baloney.
     
    #59     Sep 7, 2015
  10. Maverick74

    Maverick74

    Who said anything about not losing money? Not the sharpest tool in the shed are you?
     
    #60     Sep 7, 2015