Volatility Traders Are Vindicated in 2022 Market Roller Coaster
- Cross-asset volatility helped long strategies in bumpy year
- Concerted strong performance for vol last occurred in 2010
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In a year of contradictions that was the worst for stocks and bonds in more than a decade, the ticket to big gains was volatility. A host of strategies built around it paid off.
Hedge funds that shorted stock turbulence delivered stellar returns as equity price swings held below levels seen in previous routs thanks in part to the slow-burn nature of the 2022 crash.