As well as his main business (holding leveraged shitcos) chad trader Bill Hwang also ran the greatest tail hedge strategy the world has ever seen -- convincing his brokers to give him a free put on his exact portfolio which has paid out to the tune of multiple billions of $
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Could you go more into detail on his tail risk strategy? I understand his short book included many indices that were not correlated to his long book (long duration growth). How did this sophisticated investor make such a material error (picking wrong shorts)
It is a joke, I mean that as soon as his account balance went below $0 his brokers were on the hook for the rest of the losses
