Volatility Exposes Hedge Funds in Market Selloff: Posner

The transcript discusses the challenges hedge fund managers face with market volatility and crowded trades. It highlights the importance of risk management and the impact of liquidity on market dynamics. The conversation also touches on investor reactions to volatility, the growing size of hedge funds despite declining performance, and the opportunities available in middle market investments.

What factors contribute to the increasing size of hedge funds despite declining performance?

How does liquidity affect the operations and strategies of hedge funds?

In what ways can hedge funds find better protection against downside risks?