you are supposed to hedge your positions in order to prevent an unexpected situation from tanking the whole fund
It’s my understanding that this hasn’t been the definition of a hedge fund for some time (ChatGPT agrees). I’m assume that the investors knew that Situational Awareness was not a hedge fund in the sense you’re describing one.
Of course, it might still be possible that investors weren’t aware of the amount of risks the fund was taking on.
It’s my understanding that this hasn’t been the definition of a hedge fund for some time (ChatGPT agrees). I’m assume that the investors knew that Situational Awareness was not a hedge fund in the sense you’re describing one.
Of course, it might still be possible that investors weren’t aware of the amount of risks the fund was taking on.
Yeah this has indeed never really been the definition of a hedge fund. Only a subset of hedge funds are approximately point-in-time market neutral.