AI and Trump tariffs spur hyped-up dispersion trade
Popular vol strategy pays off in January despite highest entry costs on record
Soaring entry costs and patchy 2024 performance have done little to dent investor zeal for equity dispersion trades. And those braving record January entry levels reaped early rewards this year as market gyrations triggered by tech stock disruption and erratic tariff messaging sent stocks spinning in all directions.
“Dispersion is a hot topic right now, mostly driven by US underlyings and global baskets. The tactical format has been very much in fashion, and we’ve traded our fair share,” says
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