How Investors Can Protect Their Portfolios During Market Volatility | Paisa Vaisa

Most investors focus on what can go right. Hedge fund managers are also paid to identify everything that could go wrong. In this episode of Paisa Vaisa, we explore the world of hedge funds from an Indian-market perspective. What does a hedge fund manager actually do? How is a long–short fund different from a traditional long-only investment portfolio? And can an investment strategy perform without depending entirely on whether the overall market rises or falls? The conversation breaks down the mindset behind long–short and absolute-return investing. We discuss why hedge fund managers are “paid to be paranoid,” how short positions can be used to express a negative view or manage downside risk, and why protecting capital often matters more than chasing the highest possible return. In this episode, you’ll learn about: The difference between long-only and long–short investing How hedge fund managers evaluate both opportunities and risks The role of short selling in an investment portfolio How absolute-return strategies approach different market cycles Why objectivity is essential for professional investors The tortoise-versus-hare philosophy of consistent performance Why returns can become a byproduct of disciplined risk management Whether you are a retail investor, finance professional, market enthusiast or someone curious about alternative investment strategies, this episode provides a practical introduction to how hedge fund managers think. Watch the full episode and tell us: Would you prefer a strategy that aims for steady returns or one that takes greater risk for potentially higher gains? From decoding your personal finances to demystifying business models, Paisa Vaisa delivers candid, insightful, and jargon-free conversations. Listen on Spotify, Apple Podcasts, Amazon Music, JioSaavn, Gaana & more Watch full episodes right here on YouTube Explore more at ivmpodcasts.com Connect with Anupam Gupta: Twitter: @b50 Instagram: @b_50 LinkedIn: Anupam Gupta Foll