Justin discussed the fund’s performance, particularly its success in down markets, and its hedging approach. He explained that the fund uses systematic hedging, primarily through listed put options on equity indexes, to protect against left tail risk. The hedges are adjusted based on market conditions, with more aggressive hedging during periods of complacency and optimism. Justin also highlighted the fund’s performance since inception, with an annualized return of around 17.5%, generated primarily through outperforming during periods of volatility. Justin also mentioned that the fund has experienced four bear markets since its inception in 2018, which has been beneficial for their strategy. He emphasized the importance of diversification and adaptability in managing the fund’s investments.
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