Fri, Dec 15, 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. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. Launches - Ex-BlueCrest team to open over $200m hedge fund, Greg Coffey, a hedge fund star who retired at 41, is eyeing a comeback, Brevan Howard plans Greek funds as bond rally signals revival[more]

    Ex-BlueCrest team to open over $200m hedge fund From Bloomberg.com: A team of traders who left BlueCrest Capital Management earlier this year raised more than $200 million for their own hedge fund focused on Asian stocks, according to a person familiar with the matter. Ovata Capital Manag

  3. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  4. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  5. ...And Finally - The ongoing gun saga in the U.S.[more]

    From Newsoftheweird.com: As elder members of the First United Methodist Church in Tellico Plains, Tennessee, gathered on Nov. 16 to discuss the recent church shooting in Sutherland Springs, Texas, one of those present asked if anyone had brought a gun to church. One man spoke up and said he c