Tue, Aug 22, 2017
A A A
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. Opalesque Exclusive: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Comment: "Long-Term Investing": What managing drawdown risk can do to your long-term returns[more]

    Matthias Knab, Opalesque: Real Investment Advice writes on Harvest Exchange: Last week, I was having lunch with a prospective portfolio management client discussing the curre

  3. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  4. Investing - Hedge-fund honchos including David Tepper are loading up on Alibaba, Billionaire hedge fund manager Stanley Druckenmiller is betting big on the Chinese consumer, Big-name U.S. hedge funds shed healthcare stocks during the rally in second-quarter, U.S. hedge funds bearish on FAANG stocks in second-quarter, Hedge fund titan Viking Global made a $680 million bet on scandal-plagued Wells Fargo[more]

    Hedge-fund honchos including David Tepper are loading up on Alibaba From CNBC.com: David Tepper's Appaloosa Management and three other he ge funds took new stakes in Chinese e-commerce giant Alibaba in the second quarter, according to the latest quarterly filings. Appaloosa disclos

  5. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq