Hedging Isn't The Hard Part

After the Global Financial Crisis, I wanted a simple way to figure out how to hedge, so I worked with a financial engineering post-doc to develop Portfolio Armor's hedging algorithm. Just input the maximum drawdown you're willing to risk, and it shows you the least expensive way to hedge that level of risk.

The Hard Part Is Generating Good Returns

That seemed hard at the time, but in hindsight, it was the easy part. The hard part was generating good returns while hedging. You can see that for yourself at the...