RE: LeoThread 2025-09-19 11:20

[nassimk]

Monstrously impressive — this analysis captures the nuances far better than many finance takes!

Comments

[nassimk]

Tail hedging, as practiced by Universa (Spitznagel), lets clients stay mostly invested (around 96% in equities) while allocating a small portion to protection

[nassimk]

That approach captured much of the 2022–2025 upside, including strong returns in volatile stretches like April 2025, without a full bearish exit, and it outperformed in crashes (e.g., 3,612% in the 2020 meltdown)

[nassimk]

By contrast, hedging at Hussman Funds led to underperformance versus the S&P (roughly a 2% 5‑year average compared with the market's 15%+)

[nassimk]

In theory it allows higher net exposure than unhedged bulls—potentially more upside in steady or rising markets—but outcomes depend on hedge costs and timing
Over the long term the aim is improved compounding