Selecting the right strategy for the right diversification profile

As hedge fund strategies are not a homogenous alternative class and managers increasingly paint their strategy as non-correlated to their alternative investment peers, we examine which strategies provide the best diversification for various investors

The performance of hedge funds could be broken down into three distinct components, namely traditional betas, alternative betas, and alpha.

As a result of the very nature of their return-generating processes, hedge funds can be used to improve the diversification of traditional portfolios (that is, as part of investors' core portfolios), or to implement portable alpha strategies (that is, as part of investors' satellite portfolios).

While the alpha logic has long been the dominating paradigm, with

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The new rules of market risk management

Amid 2020’s Covid-19-related market turmoil – with volatility and value-at-risk (VAR) measures soaring – some of the world’s largest investment banks took advantage of the extraordinary conditions to notch up record trading revenues. In a recent…

ETF strategies to manage market volatility

Money managers and institutional investors are re-evaluating investment strategies in the face of rapidly shifting market conditions. Consequently, selective genres of exchange-traded funds (ETFs) are seeing robust growth in assets. Hong Kong Exchanges…

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