The final session at the 2nd Annual CBOE RMC Asia featured a panel discussion hosted by Steven Sears from Barrons.  The participants were:

  • David Dredge from City Financial Investment Company Pte Ltd
  • Richard Johnston from Albourne Partners (Asia) Limited
  • Benoit Meulot from Nine Masts Capital Limited
  • Laurent Poirot from GF Asset Management

Some highlighted quotes from the panel –

“For long volatility strategies you have to have some sort of management plan”

“There is no such thing as a good tail risk trade, there are only good risk management plans”

“When approaching a volatility oriented strategy on behalf of a client we need them to define their objective so we can properly construct a position on their behalf”

“My experience with fund managers who are not familiar with hedging strategies is that they need help from those who understand constructed hedged strategies”

“We are in a market regime change in addition to a political one”

This brought an end to CBOE RMC in Hong Kong and what was interesting to me is that the uncertainty that market participants have going into 2017 is very similar to the attitudes going into 2016.  There was more discussion about being long volatility than I can recall at any RMC over the past five years.

We reconvene in Dana Point, CA on March 8th to continue the discussion around managing risk and market volatility.  Information on that session may be found at www.cboermcus.com