Eric Peters Commentary Notes Entering Unknown Market Environment

A recent Eric Peters weekly email commentary points to a common problem facing institutional investors, as a market environment few have seen emerges.

After significant volatility, Peters notes institutional investor who selects between buying options for protection or using CTA allocation for risk managment

With horrendous August and September market volatility apparently behind investors, Peters refers to on institutional allocator who had a quandary. “Do I ask my board for $100mm to buy options?” he asked, laughing at the prospect. “They’ll say no way, not going to happen.”

While discussing the challenges of managing pension pools with valuations at elevated levels, they agreed there were few good options to...