Wed, Mar 29, 2017
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. Opalesque Exclusive: FS Investments launches energy fund[more]

    Bailey McCann, Opalesque New York: $19 billion Philadelphia-based FS Investments has launched a new interval fund which will invest in energy. The FS Energy Total Return Fund is the firm's first closed-end interval fund and will invest opportunistically in energy companies and assets. FS

  2. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  3. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  4. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  5. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less