Hi Ed - thanks for reading. I use Structured Notes via going OTC with a bank to hedge my book selectively. I.e. I have just purchased a note where if the S&P500, Dow Jones or NASDAQ does not fall by more than >40% from the date of my purchase on any day for one year, I will receive a 9.7% USD denominated yield. You can also purchased Hedged Notes where you cap upside / downside to any change in value of a stock / index. Hope that helps. Other than that - no shorting and I typically hold 15-20% of the book in cash whilst having 30% - 40% in (hopefully) non-market correlated event-driven plays.
Hi! I just found you via Twitter. Any macro hedging to protect capital?
Hi Ed - thanks for reading. I use Structured Notes via going OTC with a bank to hedge my book selectively. I.e. I have just purchased a note where if the S&P500, Dow Jones or NASDAQ does not fall by more than >40% from the date of my purchase on any day for one year, I will receive a 9.7% USD denominated yield. You can also purchased Hedged Notes where you cap upside / downside to any change in value of a stock / index. Hope that helps. Other than that - no shorting and I typically hold 15-20% of the book in cash whilst having 30% - 40% in (hopefully) non-market correlated event-driven plays.
Thanks.
The structured product's negative convexity is not for me though.