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15 results for “equity risk”
...and risk better, they should be able to exploit this volatility. The paradox of skill is a compelling narrative, but it is far from a definitive explanation for aggregate active manager underperformance. That leaves a third possibility. The S and P 5
5:21 / 6:23
from transcript5:21 – 6:23
...more risk on the table. The best you could hope to do is ride through that. And so one thing I realized in this market structure change is we're getting greater individual stock volatility. The ratio of stock vol to index vol is at very high levels r
38:00 / 39:21
from transcript38:00 – 39:21
...So, basically, it's a confusion of prices being reflecting value and the, the story about what are the dimensions of risk in the market. So that's that's a confusion that almost everybody seems to have. So a risk market doesn't say there aren't risk
20:14 / 21:19
from transcript20:14 – 21:19
...risks. Low liquidity stocks are always gonna have certain types of risks that don't exist in high liquidity stocks. But when you think about these factors, these do not strike you as iron laws of how markets work, that you will at some point get comp
32:55 / 33:59
from transcript32:55 – 33:59
Risk is dicey right now. There's gonna be a lot of deleveraging off the back of this realized volatility shock. I wanna go home short delta, like, short the market, but I wanna be short vol because vol squeezed. Vol exploded that day. That was both c
11:50 / 13:03
from transcript11:50 – 13:03
...is equity option volatility. Mhmm. You can buy those put options. But people who are not willing to pay a lot of continuous premium, you can do more sophisticated
32:15 / 33:23
from transcript32:15 – 33:23
...equity markets go down relative to the high levels, frequently go down to maybe one twentieth or one fiftieth office level. So people just can't get out. So what happens is that people sell options, then they start delta hedging. Delta hedging result
12:40 / 13:51
from transcript12:40 – 13:51
And that's been against a backdrop of relatively benign socio political economic indicators globally. Up until 2020, everyone, public or private, has been investing in a world where their multiples have been expanding, and that has been a very forgiv
8:12 / 9:21
from transcript8:12 – 9:21
the amount of time it stays as part of the S and P 500. So disruption to companies happens faster and faster and faster, which I think is a very interesting dynamic and and sort of matches what we're seeing, you know, just in terms of, like, speed of
42:45 / 43:45
from transcript42:45 – 43:45
...the risk of illiquidity, and I see it in all sorts of places. I see it with private equity players. When I see equity markets at all time highs and I keep just reading the papers and private equity guys don't seem to be able to return capital to thei
38:11 / 39:41
from transcript38:11 – 39:41
...some crowded risk? There's some of that in there. When I'm in the market, I felt it crowded in various times. I felt it more crowded in 2010 to 2019. The markets were small, but vol was low. And so what happens when vol is low is some people accept a
53:11 / 54:17
from transcript53:11 – 54:17
...risk premium. I think you just have to underwire the wider distributions of scenarios in everything that you're doing. From a macro perspective, it doesn't take much to destabilize markets. The market is not just all on one side of the boat. Everyone
52:22 / 53:33
from transcript52:22 – 53:33
...equity allocation. And if markets are slowly trending higher, so it's not going through the caps that we have on individual stocks, then we think we can keep up with the market pretty well. Where we're gonna underperform is if markets just move very
9:00 / 10:07
from transcript9:00 – 10:07
...on trades in the volatility markets, which don't necessarily make sense, you know, from a risk reward perspective. Most of the time, they should just buy equities, to be honest, if they wanna be bullish. Actually, you just reminded me. I mean, one of
22:17 / 23:31
from transcript22:17 – 23:31
...risk free asset. Now that, you know, can go wrong so many ways. In this case, the proliferation of, like, premium income overriding strategies within the ETF world, exotic structured products, and kind of, you know, more, I would say, you know, compl
6:35 / 7:50
from transcript6:35 – 7:50
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