In this paper, by the analyses about the strategy of the combinationhedge in futuresmarketsand its risk, we get least squaresestimationof the hedge ratio and its risk.
Stevenson is fighting the claim in U.S. Tax Court, but if the IRS sticks by its position and is upheld, it threatens a strategy apparently used by many wealthy individuals to raise cash and hedgerisk while deferring taxes.
For example, virtually every state pension that I know of has told locals, including participants and taxpayers, that investing in high-risk, high-fee, leveraged hedge funds is, in fact, a conservative investment strategy.