An AQR Warning and a 3,612% Return Fire Up the Black Swan Debate
- Quant firm says crash protection less effective over long term
- Taleb-advised fund says tail hedges can boost stock portfolios
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The biggest shock in modern market history made black swan insurance the hottest trade of the year. It was only a matter of time before the naysayers showed up.
As stock turmoil recedes and fund managers the world over contemplate hedging against the next big crash, options-based defensive strategies have been dominating the headlines for making a killing in the sell-off.