FANGMAN, Hangman And The Bubble’s Double Trouble
Bridgewater is the world’s largest hedge fund (AUM of $125 billion) and is the famed practitioner of such arcane maneuvers as the “risk parity trade”, which is a fancy term for selling “vol” on leverage—lots of it. Of course, without the Fed’s massive money-pumping and price-keeping operations since the 2008 financial crisis, “vol” wouldn’t even be an asset class. That’s because […]