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EACH day, in the last half-hour of trading, Mr. Offman sells out some positions and makes sure that the remainder are completely hedged, balanced out by shorts on stocks in industries that he views negatively.
Since the stock and put will move almost equally in opposite directions (a completely hedged position), the original bullish position is no longer intact.
Similar(58)
We have considered Asian developing countries due to their high volatile GDP growth and designed the optimal trading policy of these bonds in such a way that the income risk would be hedged completely.
Goldman has said repeatedly that its exposure to A.I.G. was "immaterial" and that the $20 billion was hedged so completely that it would have insulated the firm from significant losses.
"The whole hedge-fund industry is completely terrified of missing a rally now," says the boss of a London-based fund.
SFPERS chose not to follow in the footsteps of the California Public Employees Retirement System, which made the well-publicized decision last year to completely exit hedge funds.
Then he hedged.
I hedged my bets.
She hedged.
And they hedged.
Well hedged.
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