Risk Management for Bears

Published on
December 5th, 2018
30 minutes

Risk Management for Bears

The Expert View ·
Featuring Ken Grant

Published on: December 5th, 2018 • Duration: 30 minutes

Ken Grant, founder of General Risk Advisors, is one of the most foremost experts on volatility and hedge fund risk management. In his debut appearance on Real Vision, he discusses how the texture of market volatility has changed over the years, and provides his predictions on how the next few months are likely to unfold. He also provides some highly salient advice for those who happen to be bearish on equities right now. Filmed on November 27, 2018 in New York.


  • JM
    Jeff M.
    6 December 2018 @ 01:33
    I guess "buy the dip" will always work?
    • JM
      Jeff M.
      6 December 2018 @ 02:00
      How come Japan hasn't been able to continuously levitate its own stock market despite what would appear to be an incredible tailwind of Abenomics, etc? Perhaps everyone being on board and benefitting from a rising stock market isn't enough to guarantee the outcome?
    • DS
      David S.
      5 January 2019 @ 04:18
      If you live long enough. DLS
  • KF
    Kenneth F.
    15 December 2018 @ 16:09
    Makes me want to short more when an “expert” says it’s too risky to short. 10 year bull markets do that.
  • EB
    Enrico B.
    6 December 2018 @ 14:25
    Summary - Risk Management for Bears: Do not go short... I feel that topic could have been covered more adequately.
    • MV
      Mario V.
      14 December 2018 @ 23:49
      They just don't want the price of their borrow going up.. I short no leverage safe enough..
  • VS
    Victor S. | Contributor
    6 December 2018 @ 16:20
    Interesting but he did not make a case on what to do?
    • DS
      David S.
      7 December 2018 @ 00:10
      He said to convert to and hold cash until you feel you can get back in the market. He is not guessing how and when to buy as there is certainly not enough information DLS
    • EF
      Eric F.
      8 December 2018 @ 05:32
      Good answer David. Lots of criticisms but at least someone caught the nuggets.
  • SW
    Scott W.
    5 December 2018 @ 20:00
    guys, the suggestion has been made on multiple occasions to have an audible utterance of the question in addition to a visual display, thus providing the option for aural-only consumption. This is a seemingly straightforward and reasonable request.
    • EF
      Eric F.
      8 December 2018 @ 05:29
      And RVTV keeps bloody adding them and then stopping again. I think their stats are wrong as surely more people listen than watch. How the hell could you get through a decent chunk of content otherwise? I really enjoy listening to much of the content and only watch where visuals etc. clearly enhance the experience.
  • SR
    Sami R.
    7 December 2018 @ 19:34
    Thank you Ken! Investors would benefit more by spending more time due diligence the risk manager and risk processes - as opposed to second guessing the portfolio manager(s).
  • JO
    Johnny O.
    7 December 2018 @ 18:26
    This was published on Wednesday. Tuesday was a fantastic day to be short.
  • RA
    Richard A.
    6 December 2018 @ 11:24
    For the one millionth time RV, stop dorking those who are listening rather than watching, and voice over the questions, please, please, please.
    • DS
      David S.
      7 December 2018 @ 00:15
      The person in the monologue could state the question after there is a problem with voice over. DLS
  • VS
    Victor S. | Contributor
    6 December 2018 @ 16:20
    Interesting but he did not make a case on what to do?
  • CM
    C M.
    6 December 2018 @ 15:48
    Thought it was a interesting video to watch. Cash is king in a world that is unpredictable. Hence, don't go short since a short term political change can drive the market against you. Also agree on the voice overs for the titles. Since I am working while watching, have to keep re-winding to see the question.
  • RM
    Richard M.
    6 December 2018 @ 13:49
    Very interesting and enjoyable discussion! Ken seems like a very bright guy and was pretty spot on in his observations. I have leaned to the short side the last year or two (but fortunately Fleck kept me from making any short trades as they would have been premature and loss making ventures - but the time is coming soon!). Would like to have Ken back on in 2019 as I'm sure volatility will return in a big way (as markets jig and jag in a downward progression).
  • CC
    Christopher C.
    6 December 2018 @ 04:11
    If you did not get this, then either this wonderfully semi-autistic gentleman who has survived and thrived for decades (generations) in the markets is wrong, or you have something to learn. This interview is another great gift from RealVision we get to open before Christmas. Hope you enjoyed and learned as much as I did. Happy holidays all.
  • AA
    Aymman A.
    5 December 2018 @ 20:30
    No useful information.
    • RR
      Ryan R.
      6 December 2018 @ 02:54
      I wished he would have provided a free trade examples. I like when real vision guests provide a concrete opinion.
    • RR
      Ryan R.
      6 December 2018 @ 02:55
      * a few trade examples
  • AW
    Aaron W.
    6 December 2018 @ 01:12
    Your graphics department needs to fix the timing on almost every video. No one reads text that fast lol.
  • HJ
    Harry J.
    5 December 2018 @ 22:47
    I’m relatively sure that most who practice the moves he referred to are aware of the issues surrounding his commentary.
  • MM
    Mike M.
    5 December 2018 @ 22:44
    Very good. Much appreciated.
  • NH
    Neil H.
    5 December 2018 @ 21:39
    Seemed like a waste of time.
  • MH
    Marco H.
    5 December 2018 @ 21:13
    Ken does raise a few questions. He makes a number of statements that should have received further inquiry. On what basis, what facts does he state the uncertainty in the market? The capital outflows (if I understood things correctly). I would have loved to have heard more details, added with data. I understand not every interview can be filled with graphs like the ones Raoul presents but a bit more data please.
  • MP
    Matthew P.
    5 December 2018 @ 16:58
    "How to speak for 30 minutes without saying anything...btw institutionally priced" Includes: name dropping, industry jargon hot words, cnbc headline one-liners, double talking so that any outcome can be proven right, 90% hindsight narratives, and last but not least smug attitude semantics
    • PC
      Peter C.
      5 December 2018 @ 18:30
      I feel exactly the same. many words without saying anything concrete. I did get one thing: preserve capital. but who needs that if he is here watching real vision.?
    • DS
      David S.
      5 December 2018 @ 19:52
      Maybe you are just well ahead of the class. I find that practical knowledge needs to be reinforced so it becomes part of the trade. DLS
    • ML
      Matthew L.
      5 December 2018 @ 20:26
      I agree. What the heck did I just watch?
  • RS
    Rajesh S.
    5 December 2018 @ 19:48
    Too general for retail investor. Perhaps hid S newsletter might be better.
  • MS
    Mark S.
    5 December 2018 @ 19:46
    This guys a vol expert? Please, more Chris Cole and less Ken Grant when it comes to vol.
  • DS
    David S.
    5 December 2018 @ 19:40
    Well done. Practical knowledge should always be headed. For newer investors - A zero net position may sound like low risk, but money at risk is 100% on the long and possibly more than a 100% on the short. As Mr. Grant pointed out the long is less risky than the short as on the deadline is always getting nearer on the short. This is why we need RVTV. Thanks Mr. Grant and good luck. DLS
  • LJ
    Lucille J.
    5 December 2018 @ 19:14
  • AM
    Alonso M.
    5 December 2018 @ 17:06
    I enjoyed watching this. I think it would be useful to go into more detail about the different purposes for short positions and how one would implement risk controls on short positions given the purpose. For example, if the short position is a hedge against a long position in the same sector, what triggers the PM to cover the short position? How is this different from a situation where an equity index is being held short as a hedge against a basket of long positions with a sector mismatch? How is this different from a short position that is being held with no offsetting long with the expectation of seeing a significant drop in the share price? Perhaps it will seem obvious to RV subscribers, but a discussion of the risk controls for each of these situations could be rather helpful as we head into 2019.
  • tW
    tgwtom W.
    5 December 2018 @ 14:49
    I take no risk in praising this insightful presentation.