If there was a way to protect your portfolio from periodic blowups like the one earlier this year, would you want it? Of course you would, but so would everybody else. And because there is such a strong desire for this type of insurance, the eventual payoff might not be worth it if the premiums that you pay along the way are too expensive.
AQR took a closer look at tail risk hedging strategies and showed that:
Over the 35…
AQR took a closer look at tail risk hedging strategies and showed that:
Over the 35…
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