There are a lot of articles about how the people betting on long volatility hit the lottery recently and got massive payouts. That got me curious about funds with a volatility hedge, and that is exactly what SPXH is supposed to be. So I would expect to see it lag SPY over time as its volatility hedge bled, then see a massive outperformance on a volatility spike as SPY falls while the hedge hits massive gains... but that's not what happened.
This is what happened. The hedged fund fell further and didn't recover in the 1 situation where it should have really paid off. What's the deal?
Submitted February 18, 2018 at 09:39AM by pewpsprinkler http://ift.tt/2GnMAra
