Hedge funds add another layer to portfolio modelling, as they employ a stock-specific, risk-only approach
When investing in a hedge fund, you need to understand its strategy
The Chicago Board Options Exchange is expanding the tools you can use to anticipate future volatility. Already, the CBOE disseminates information on the anticipated volatility for broad-based stock market indices, oil, gold and, as of early this year, a select number of individual stocks. Financial advisors who understand how to use these instruments can enhance […]
Hedge funds offer more home runs, but with the risk of more strikeouts
The success of this absolute-return hedge fund strategy rests with how tightly the basket of stocks tracks a broad-based equities index
A once common hedge fund strategy is underperforming less risky alternatives
But what typically drives performance is the use of leverage. And too much of it can cause even the best strategies to fail badly
New ETNs and ETN options offer ways to profit from uncertain markets
Although it would appear that VXX tracks the CBOE’s volatility index, the degree of the move can be quite different
Extending the concept of put writing to the “bull put spread” helps eliminate the risk of being blindsided by an unpredictable event