Hedge fund buys options… WSJ

Here is a hedge that does very well buying options… From the Wall Street Journal, here…

“His firm, Element Capital Management, posted a gain of 26.8% through October, investors say, dwarfing the 1.86% loss suffered by the average hedge fund, according to data-tracker HFR. Element has posted average gains of nearly 21% since launching 13 years ago and hasn’t suffered a down year.

Mr. Talpins is a “macro” trader who uses options to try to capture the upside of—and limit potential losses from—strategies aimed at anticipating global economic shifts. Paying for stock and bond options can lead to losses in placid markets, but volatility over the past year has buoyed Element’s bullish wagers on U.S. stocks and the U.S. dollar. Mr. Talpin’s bearish bets on the U.S. interest rates and the euro also have paid off.”