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Research

A selection of Lake Hill thought pieces which provides insight into our philosophy and process.

RESEARCH

Investing In A Roulette Wheel
A simplistic analogy to help explain risk management and capturing an edge in investing
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Hedging Left-tail Risk With Right-tail Options
Find the portfolio protection you need without bleeding to death along the way
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What Is The Edge And Why Should It Work?
Looking at the difference between implied and realized volatility
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Importance Of Properly Sizing Investments
Make portfolio allocation decisions based on both expected and unexpected outcomes
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Calibrating Expectations Using Sharpe
Define your risk tolerance and manage your expectations accordingly
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Evolution Of Hedging And Derivatives
The history of hedging since the 1800's
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The Popularity And Pitfalls Of Weekly Options
Beware the risk of ruin from systematically selling options with negative edge
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Shock Scenarios And Understanding The Process
The importance of combining "What if?" analysis with "What then?" processes
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Analyses Versus Biases In Bonds And Options
Behavioral biases and preconceived notions can lead to suboptimal decisions
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How Long Does One Have To Wait For An Option To Pay Off?
A look at the roulette wheel to understand timing, capital management & the importance of discipline
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Options Replication And Delta Hedging
A fundamental lesson about options
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Insurance Companies Are Liquidity Providers
Striking similarities and subtle differences between insurance and options
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Innovations In Risk Transfer Over The Past 4000 Years
The history of options: Straight outta Mesopotamia
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Tail-Risk Hedging By Systematically Buying Puts
A simplistic approach that provides false comfort
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Cargo Cult Trading And Option Overlay Performance
Observing that something seems to work can blind you to how badly it can fail
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