Tail hedging strategies have not become fully priced into markets despite Taleb's books, Universa's performance, and Spitznagel's books because MBA education and Modern Portfolio Theory blind people to the observation, and institutional incentives mean traders managing other people's money must make frequent returns rather than hedge rare tail risks.
causalpending
Speaker
Nassim Nicholas TalebEvidence Quote
“if you're trading your own money you're going to be pretty rational about it if you're uh dealing with the institutional framework you need to make money frequently and the trap of needing to make money frequently will lead you to eventually sell volatility so there's no incentive to buy volatility for someone who's employed”
Created: 8/11/2026, 7:44:21 AM
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