Fri, Aug 1, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Some ways to handle risk in current macro environment

Friday, December 21, 2012

Benedicte Gravrand, Opalesque Geneva:

There are many ways to deal with risk and tail-risk. But in the current environment, one must be even more creative. Participants at the recent Opalesque Geneva Roundtable discussed some of their risk management methods, such as the use of derivative-driven insurance strategies, beta management, approved tail-risk managers and overlay programs, a benchmark-agnostic approach, a larger allocation to sovereign bonds, stress risk measures, and segregated accounts.

Tail-risk is on both sides of the distribution in the current macro environment, said Gregoire Haenni, CIO of the CERN Pension Fund. On the one hand, there are stimulus programs going on in developed markets, and on the other, those same markets are facing fiscal tightening. Growth figures early next year will be disappointing and equities market could drop too. He believes that credit strategies may do well if they’re well dynamically managed as well as risk managed. For tail risk protection at CERN, he added, "we implemented ourselves some mainly derivative-driven insurance strategies. But, we also actively manage the beta of the portfolio."

Mercer has a list of approved tail-risk managers and overlay programs which they implement with various institutions, Dominique Grandchamp, Senior Investment Consultant at Mercer, told the participants. But tail-risk programs do not address the r......................

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: Kyria Capital Management bets on women hedge fund managers[more]

    Bailey McCann, Opalesque New York: As hedge fund assets top $3 trillion, and long/short strategies get more crowded than ever, with every manager hunting for even the tiniest bit of alpha, a new firm has emerged that claims its own edge – women. A recent Rothstein Kass study showed women-owned a

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  4. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  5. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by