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17 results for “investment risk”
...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
...not making some risky investment, you know, with our money. So now the more technical term is your expected utility, but we try to jump through expected utility by saying, let's just translate expected utility into certainty equivalent wealth or risk
11:21 / 12:32
from transcript11:21 – 12:32
...of our risk management tools have these guardrails in mind to highlight to us, this is starting to move out of that comfort range. Let's dig into it. In particular, the stress testing piece is very important. And the reason for that is most of the ti
31:32 / 32:47
from transcript31:32 – 32:47
Like, forget the fact that you're only valuing it once a year or you're valuing it based on your own external valuation firm, and the number never moves. And so, therefore, there's no volatility in private equity, or it's three, four, 5%. And we see
24:46 / 25:56
from transcript24:46 – 25:56
...risk that you want to quantify. The first thing that you do is you figure out what that risk is, a full distribution of outcomes. And then you look at the instrument set that's out there in the marketplace starting from the most reliable and, surpris
32:15 / 33:23
from transcript32:15 – 33:23
...alternative risk premiums, is based on this idea that you can go and sell volatility in various forms, explicit forms or implicit forms to generate income. So Everybody's doing it. Yeah. That's the answer. Everyone even more people are doing it. So w
15:40 / 16:45
from transcript15:40 – 16:45
...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
...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
...own risk appetites and what can they really handle.
29:16 / 30:25
from transcript29:16 – 30:25
...that risk, you can lose a lot of money. The second thing is the asymmetry of liquidity, especially in dealer driven markets. People who grew up in the equity markets are used to exchange traded markets. You go into fixed income markets, suddenly liqu
53:53 / 55:09
from transcript53:53 – 55:09
...risk, but potentially a rich environment for active focus alpha generation, the opportunity sets look interesting in the year ahead. From the perspective of higher volatility, that's a really good thing for these types of strategies. We're supposed t
44:14 / 45:27
from transcript44:14 – 45:27
...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
...perspective will compensate us for not only the visible cost of trading of spreads and commission, but the less visible cost of market impact. How do you assess the relative importance of the signal from the model to market impact in trading? We have
32:58 / 34:02
from transcript32:58 – 34:02
...investment approaches that we've had in owning equity volatility that we have traded for years, and it's codified them into something that's purely systematic and not only puts risk on but takes it off and takes profit and crystallizes those profits
24:46 / 25:54
from transcript24:46 – 25:54
They sell option out of the sell rich vol. The market stabilizes, ranges compress. You need to keep feeding volatility. Volatility is mean reverting. And if you can't keep having daily one and a half percent moves, which is a big ask, you need persis
29:14 / 30:16
from transcript29:14 – 30:16
The volatility of NVIDIA is higher than the volatility of gold at this point. So the volatility aspect of it can be a bit of a misnomer. People say it was too volatile for me. Maybe historically, you know, if we look back over time, it has had volati
30:06 / 31:06
from transcript30:06 – 31:06
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