Texas Hedge


Also found in: Dictionary, Wikipedia.

Texas Hedge

A hedged position that increases rather than reduces risk. A Texas hedge is made without regard, or with incorrect regard, for the mathematical formulas necessary to lessen exposure. A Texas hedge may involve applying models incorrectly and finding the wrong efficient portfolio frontier and therefore investing in the "wrong" securities.
References in periodicals archive ?
Todd Stein and Steven McIntyre of the Texas Hedge Report point out that Beijing is seeking to welcome other resource-rich nations into its "historical glow." "Keep your eyes open for stepped up greenback dumping by China in exchange for natural resources such as oil-bearing properties or perhaps more mines," they advise.
"We're all concerned about what we used to call 'the Texas Hedge,'" says Whitney.
Full browser ?