Vol twitter is fantastic because there is so much drama and noise and fury over which pet theory is right, and then you look up the 10y returns of the biggest, noisiest accounts and the only appropriate response is “....eh”
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One problem is not enough leverage/wrong fee model. If you need to invest 20% of your portfolio in a long vol fund to see a meaningful impact, the drag on returns is going to be too big to bear.
Universa/Spitznagel have the right model. They expect to return -100% on most quarters (+4000% in crashes) so you need to keep topping up, but it’s very capital efficient.
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Apart from that I don’t know, I can only assume they are not very good at options
Thanks. Twitter will use this to make your timeline better. UndoUndo
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In that case, why not buy the qtr put yourself?
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If you know what you're doing that is almost certainly a better model.
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Seems very inefficient. Instead, charge 100% per quarter as carry and when it blows up, have a relation in a country without extradition. Even more capital efficient.
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I would just start a crypto exchange, add lots of fun new gambling contracts for degens, then flee with the private keys and everyone's money
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i don't think they are much better...
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Can't see their returns so I can't say. But at least they aren't pointlessly tying up cash in money mkt funds.
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