- I was looking for some good hedges against an Ukraine-Russia conflict, however, it's not easy to find good candidates.
- By accident, I remembered that Renault actually sells about 20% of its cars in Russia.
- If Russia and Europe start imposing sanctions on each other because of a Ukrainian invasion, Renault might become the biggest victim.
- Renault also has the weakest fundamentals of all the European carmakers and is going through a heavy restructuring.
- Buying put options on Renault might be the best way to hedge your portfolio.
For further details see:
Putin Invades: Short Renault