Volatility measures risk. It also measures uncertainty or at least variation in opinions on valuation. Volatility is an opportunity because, if a manager has skill, it should be shown when markets are more volatile. If you make the right decision, you will be paid more; if you are wrong, the pain will be higher. Macro hedge funds can go long and short across asset classes, so they should be able to take advantage of volatile markets. The visual supports that case.
Volatility is an opportunity for distinction with a manager and strategy.
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