DISQUS

Juan · 5 months ago

Nassim Taleb associated Universa Investments:
Lets see how well an academic's (a very theoretical academic) advise serves this hedge fund. How do you think they will play the interest rate increase? Shorting bonds?
marketfolly · 5 months ago

hey Juan, they won't play it with one bet... they'll spread it out over numerous bets. Shorting bonds, longing commodities, interest rate options bets, gold, a lot of different ways they cited as part of their strategy. Basically a diversification amongst every inflation bet out there... so if inflation doesn't come, this fund seems like it would flop (although it will obviously be hedged somewhat).