Tail Risk Hedging
Radio Feature 66: Vineer Bhansali in conversation with Sona Blessing
Wednesday, February 06, 2013
Vineer Bhansali is managing director and portfolio manager, head of quantitative investment portfolios and a member of the asset allocation committee at PIMCO. In this radio feature he shares why it pays to be countercyclical in the context of tail risk hedging; the trade-off between the cost of protection and securing returns; instruments in the tool box that can be set up as hedges against for e.g. political risk...
Download this feature as MP3 (9.32 MB)
Listen to the complete feature
Tail Risk Hedging
Or listen to selected sub-features
Why do you believe it pays to be countercyclical in the context of tail risk hedging?
What sort of tools and instruments could be used to hedge given the current market scenario?
Isn’t it a challenge, cost wise, particularly when markets are whipsawing; in "risk-on", "risk-off" mode?
You view risk through a different lens. Could you elaborate?
Does your "New Approach" optimise the ability to gain returns at lower costs?
Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class [more]
Top hedge fund managers talk about how easy their jobs have gotten
From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more. T Rowe's challenge to Dell deal may fuel critics of 'appraisal' [more]
From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as " News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders [more]
Ergen says LightSquared plan unfairly favors hedge funds
LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow [more]
Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and New market regime has created more dispersion between managers [more]
Komfie Manalo, Opalesque Asia:
The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart