notices - See details
Notices
D
Dom (not verified)
13th June 2016 | 12:25pm

I'm not fully on board with this. I've always seen the purpose of hedge funds as providing a relatively uncorrelated return stream. The free lunch of diversification and re-balancing are what add value.

This strategy is definitely uncorrelated when equities rise any or fall sightly. However it is going to be nearly perfectly correlated when equities fall sharply. That's exactly when you want an uncorrelated hedge in your portfolio.