The Tell: How a 6,000% profit on a single trade saved a small hedge fund from disaster

Last week, while countless others were getting annihilated, Lincoln Edwards saw the millions of dollars he manages for a small Austin, Texas-based hedge fund double in the span of just 15 minutes, thanks to a wicked spike in volatility that rattled the stock market and blew up one of Wall Street’s most popular — and profitable — trades.

A 6,000% return on a single position will do that for you.

“We basically bought what amounts to insurance against a hurricane destroying our house,” Edwards said in an interview on Wednesday. “We couldn’t have predicted when this storm would hit, but if we hadn’t protected ourselves, we would have been completely knocked out.

>>> Original Source <<<