Sun, Aug 28, 2016
A A A
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

amb
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. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new