HARI P. KRISHNAN, PHD, is a fund manager at Cross-Border Capital, where he runs systematic macro and volatility strat-egies. Cross-Border is a London-based hedge fund with roughly US$300 million in assets. He previously managed a CTA for a London-based asset management bou-tique, and he was an executive director and co-head of alternative asset allocation at Morgan Stanley (Chicago and London). In addition, Dr. Krishnan has worked as an options trading strategist and as a senior economist at the Chicago Board of Trade. He received a PhD in applied math from Brown University, and he was a post-doctoral research scientist at the Columbia Earth In-stitute, Columbia University, before moving into finance.

Preface
Acknowledgments
About the Author
Chapter 1 Introduction
Chapter 2 "Safe" Havens and the Second Leg Down
Chapter 3 An Overview of Options Strategies
Chapter 4 Hedging the Wings
Chapter 5 The Long and the Short of It
Chapter 6 Trend Following as a Portfolio Protection Strategy
Chapter 7 Strategies for Taking Advantage of a Market Drop
Chapter 8 "Flash Crashes", Crises and the Limits of Prediction
Glossary
References
Index

Cut risk and generate profit even after the market drops
The Second Leg Down offers practical approaches to profiting after a market event. Written by a specialist in global macro, volatility and hedging overlay strategies, this book provides in-depth insight into surviving in a volatile environment. Historical back tests and scenario diagrams illustrate a variety of strategies for offsetting portfolio risks with after-the-fact options hedging, and the discussion explores how a mixture of trend following and contrarian futures strategies can be beneficial. Without a rational analysis-based approach, investors often find themselves having to cut risk and buy protection just as options are at their most over-priced. This book provides practical strategies, expert analysis and the knowledge base to assist you in recovering your portfolio.
Hedging strategies are often presented as expensive and unnecessary, especially during a bull market. When equity indices and other unstable assets drop, they find themselves stuck - hedging is now at its most expensive, but it is imperative to hedge or face liquidation. This book shows you how to salvage the situation, with strategies backed by expert analysis.
* Identify the right hedges during high volatility
* Generate attractive risk-adjusted returns
* Learn new strategies for offsetting risk
* Know your options for when losses have already occurred
Imagine this scenario: you've incurred significant losses, you're approaching risk limits, you must cut risk immediately, yet slashing positions would damage the portfolio - what do you do? The Second Leg Down is your emergency hotline, with practical strategies for dire conditions.