Thu, Oct 20, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Blending convergent and divergent strategies to hedge tail risk

Monday, August 27, 2012

Paul Lucek
Bailey McCann, Opalesque New York:

Paul Lucek wasn’t always a financial industry leader, he originally got involved in trading as a hobby, then, as he explains in a recent Opalesque TV interview, that hobby turned into a part-time job and eventually a full time job. Now he is Director of Research and a Senior Portfolio Manager at State Street Absolute Return Investment Strategies (SSARIS). He was recently interviewed by Matthias Knab for Opalesque TV.

SSARIS has $2.5 billion under management and Lucek manages $530m of that within internal proprietary strategies that are directly invested in. He takes an approach that involves blending two types of return streams – convergence and divergence - in order to provide investors with a more normalized return distribution.

"Essentially, we believe in asset class diversification, and the classic asset class diversification is equity and fixed income. You can extend that further to include commodities and currencies. But beyond asset class diversification we believe in another level of diversification and that is diversification on return streams," Lucek explains.

He notes that most traditional hedge fund strategies and long-only strategies are convergent in their nature due to their basis in fundamental economic and valuation principals. However, in an irrational market, like markets that have existed since the 2008 crisi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Macro hedge funds up 3.3% in one week on Fed and Brexit pays off[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were boosted by the strong performance of global macro funds, with the Lyxor Global Macro Index gaining 3.3% as of the week ending Oct. 11 (-1.7% YTD), Lyxor Asset Management reported. Their short on the p