Dispersion Pods ‘Soul-Punched’ In Wall Street’s Latest Vol Shock

On Wednesday, Bloomberg reported that multi-strategy hedge funds managed to get through August largely unscathed. The linked article documented "steady returns" for multi-strat firms, but noted that "tough trading conditions" did result in some liquidations and scattered pod casualties. Note that the dispersion trade -- which, simplistically, funds longs in single-name vol with index-vol shorts -- is a pod shop favorite. Basically, the trade looks to exploit the disparity between surface-level