(Opalesque) As volatility has returned to the market, investors are looking for ways to hedge their positions. However, delegates at the recent Opalesque UK Roundtable note that hedging can be an expensive proposition and investors should be aware of the potential drawbacks.
“We know that over history, the seller of protection tends has tended to be the one who comes out better when it comes to hedging,” said Luke Ellis CEO of Man Group. “The reality is that buying tail protection, unless you’re doing it for regulatory reasons, requires amazing timing.”
