Abstract
High market volatility has driven the development of investment strategies advertised to deliver reduced risk without reduced return. The “low-volatility” equity anomaly (low-risk stocks may have similar or greater returns than high-risk stocks) is best exploited by investors as part of the toolkit of a broader active strategy. “Tail risk” strategies can provide protection in extreme market events, but their persistent negative carry (ongoing cost) make them unappealing to most investors. Managed futures and global macro hedge fund strategies have desirable downside risk protection characteristics combined with positive returns and alpha for skilled investors. Investors can increase their downside protection by allocating part of their hedge fund or opportunistic asset category to managed futures and global macro strategies.
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 callDisclaimer: 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.
