Mon, Dec 11, 2017
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The four different types of investor that are interested in alternative risk premia

Wednesday, August 09, 2017

Komfie Manalo, Opalesque Asia:

Investment consultancy firm bfinance said it has identified different types of investor that are interested in alternative risk premia (ARP) with each approaching the space from a different perspective.

Speaking at the latest Opalesque 2017 UK Roundtable, Dr. Toby Goodworth said that the areas of focus of these investors can vary considerably.

Goodworth explained ARP generally, "Alternative risk premia investing requires a somewhat different mindset; it's not the conventional strategy allocation mindset, rather a risk factor framework which crosses multiple asset classes in one style. For a lot of investors this is a new concept which is often, incorrectly, associated with pure 'black box' quant investing."

He continued saying that a lot of education is required to get people comfortable with the ARP space. For example, the first aim would be to dispel the myth that all risk premia investing is 'black box'. In fact, much of the space is academically well established, and those premia that are less established academically are mostly well understood empirically as 'practitioner premia', and in effect, tried and tested over many years.

Goodworth presented the four types of risk premia investors as:

1) Investors using risk premia as a complement to a broader hedge fund portfolio, often in a core sa......................

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. News Briefs - Italy's Carige to sell consumer credit arm to Chenavari, Less than a year after hedge fund coup, East Bay drug maker cuts jobs, looks to move HQ[more]

    Italy's Carige to sell consumer credit arm to Chenavari Italy's Banca Carige aims to sell its consumer credit unit to London-based hedge fund Chenavari by Dec. 6 when a vital 560 million euro ($664 million) cash call ends. Genoa-based Carige must comply by the end of the year with Europe

  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 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 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. Opalesque Exclusive: Credit Suisse Asset Management's NEXT Investors leads $6M Series A round for LUX Technology and Services[more]

    Bailey McCann, Opalesque New York: Credit Suisse Asset Management's NEXT Investors has led a $6 million Series A funding round for LUX Technology and Services, a business and technology solutions provider for the alternative assets industry. The investment will be used to fuel growth of Trans