Sun, Oct 23, 2016
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. 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