Tail risk funds have gotten a lot of attention since the sudden selloff that struck the markets in March, so many wonder how they work. Several tail risk funds reported returns in excess of 1,000%, causing questions about how such a return is even possible. It has to do with the way they go about investing and the way they report their returns.
Q1 2020 hedge fund letters, conferences and more
What is the point of a tail risk fund?
The first thing that's important to understand is that tail risk funds act as portfolio insurance. As a result, allocations to them are very small, usually no more...
