John At The Center

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Pimco, manager of the world’s biggest bond fund, Deutsche Bank AG and Citigroup Inc. are among firms offering clients tail-risk protection, either through funds or traded instruments that act as hedges. Taleb said few will have the stomach to stick with the strategy.

“They will drop like flies,” said Taleb, now a professor at New York University’s Polytechnic Institute, who in 1999 set up tail-risk hedge fund Empirica LLC, which he ran for six years. “They and their customers will give up at some point. I’ve seen it before.”

via Pimco Sells Black Swan Protection as Wall Street Markets Fear – Bloomberg.