- posted 9 years ago
Any comments on the new retail oriented funds that are being set up for this? Pimco says it can implement a 15% loss per year floor for a tiny cost of 25 - 50 basis points using the same techniques as hedging funds (articles talk about Pimco Tail Risk Hedging Fund 1, but I'm not sure that is retail; maybe Pimco Global Multi-Asset Fund PGMAX).
Personally I'm not so much asking about whether this is a good approach in general, compared to approaches like conservative diversification or active de-risk trading response. I have an eccentric use for it involving keeping a minimum balance in one account that benefits from that. But if the cost's are coming down for hedge-like protections, maybe it deserves wider use.