Volatility Scaling

topic on 1 show · 2 statements across 1 episodes

Capital Allocators

2 statements about Volatility Scaling, every show

Aitken: Volatility Scaling Relies on the Fallacious 'Slower Fool Theory'
“Volatility scaling, or the assumption of volatility scaling, I think had a large hand in the disruption we've seen, and just to finish this point, there was a marvelous article written in the autumn of 1987 by an extraordinary Chicago trader called Richard Den…”
James Aitken Mar 18, 2020 ▶ 11:29 James Aitken – Systemic Risk in a Crisis (Capital Allocators, EP.126)
Aitken: Multi-Strategy Funds Rely Heavily on Volatility Scaling
“The past several years have been all about volatility scaling. All these gigantic multi-strategy businesses, absolute return strategies and others. It's all about volatility scaling. When implied volatility comes down, I have to increase my exposure to keep up…”
James Aitken Mar 18, 2020 ▶ 10:58 James Aitken – Systemic Risk in a Crisis (Capital Allocators, EP.126)

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