We wanted to have the title be: why $18 B of investors missed out on the Tayvis wedding. But maybe too abstract?
And we were going to write a long blog post digging into all that’s wrong with the JP Morgan hedged equity strategy… how they have to sell closer and closer calls, how their size and transparent plumbing We wanted to call this one “Why $18B of Investors Missed the Tayvis Wedding.”
But maybe too abstract?
And we were going to write the long version, digging into everything about the JP Morgan hedged equity strategy. How they have to sell closer and closer calls, how their size and transparent plumbing can cause execution issues.. And how $18 billion in investors probably didn’t really know — until this year — that they could get capped like this. Like the market up 12%, then down 1% type capped…
And then show you all the liquid alts that do a better job of the same thing on the new Liquid Alts page of our new website… [see here] can cause execution issues.. And how $18 B probably didn’t really know – until this year, that they could get capped like this….. like the market up 12%, them down 1% type capped… And then show you all the liquid alts that do a better job of the same thing on the new Liquid Alts page of our new website… [see here]
But let’s just show the chart…

Source: ycharts
And the comps…

Source: ycharts
Nothing nefarious here. This is just how the strategy works. This is its known blind spot… Still, we think there’s better options out there. [See the Liquid Alts page →]




