Mon, Jun 29, 2026
A A A
Welcome Guest
Free Trial RSS pod
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

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Nvidia extraordinary growth and the challenge of sustaining demanding valuations over time[more]

    Antonio Di Giacomo, Senior Market Analyst at XS.com, writes: Nvidia has established itself as one of the most extraordinary growth companies in the global technology sector. Over the past two fiscal years, its revenues have risen from levels close to $60 billion annually to well above $120 billi

  2. Secondaries take center stage: What the 2026 PE landscape means for GPs and investors[more]

    Matthias Knab, Opalesque for New Managers: The 2026 edition of Dechert's Global Private Equity Outlook - "Signs of a Gradual Thaw" - marks a notable shift in industry sentiment. After years of compr

  3. And, finally: Time to share it with the people[more]

    From Newsoftheweird: Leavenworth, Washington, has become a tourist destination because of the Bavarian theme businesses have adopted there, NPR reported. One shop, the Leavenworth Nutcracker Museum, houses the world's largest nutcracker collection, thanks to 101-year-old Arlene Wagner. Wagner sta

  4. Opalesque Exclusive: Private Markets Evergreen Funds - An Insider's View[more]

    Matthias Knab, Opalesque for New Managers: Private Markets Evergreen Funds: What Investors Need to Know Before They Dive In The democratization of private markets is well underway. Structural barriers t

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m