A few more miscellaneous market notes | Value Investing News

A few more miscellaneous market notes

  • Be cautioned that an ongoing trade that worked for the entirety of 2019 was to short volatility, and this continued to work until about the middle of February, where sophisticated quant funds that structured paired trading (namely taking extreme advantage of volatility/index rollovers) were absolutely crushed as a result of the Coronacrisis.
  • I do not frequently have macro convictions but this is one of them where I do.
  • Unlike marijuana companies, however, you have a much smaller cost of carry to hold a short position on volatility.
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