Abstract

Conscious consideration of risk allocation must be paired with asset allocation if diversification is to have its full impact on a portfolio. Among the trends in portfolio structuring is the use of hedge funds to find additional sources of active risk premiums by separating active from systematic risk, although data indicate that hedge funds are not entirely free of systematic risk. Other trends for managing risk include economic diversification, alpha-concentrated strategies, and alteration of portfolio constraints.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.