> we tend not to have things like stop losses I think those aren't necessarily great risk management tool
It seems to me that you need to have a stop loss to prevent blowing up when you have leverage. This sounds like one of those strategies that might work most of the time, but will eventually lead to bankruptcy, like picking up pennies in front of a bulldozer.
I haven't read Mark Spitznagel's latest book, but it's all about problems like this.
It also suggests that this hedge fund was run by amateurs that hadn't learnt the lessons of other overleveraged funds like LTCM.
It seems to me that you need to have a stop loss to prevent blowing up when you have leverage. This sounds like one of those strategies that might work most of the time, but will eventually lead to bankruptcy, like picking up pennies in front of a bulldozer.
I haven't read Mark Spitznagel's latest book, but it's all about problems like this.
It also suggests that this hedge fund was run by amateurs that hadn't learnt the lessons of other overleveraged funds like LTCM.