Why this strategy
This strategy seeks to enhance portfolio diversification and stabilize return potential, particularly during sustained bear market periods. We target positive absolute return over a full economic cycle with little to no correlation to broader capital markets through active tactical positioning based on directional, factor-based, structural defense, and style premia.
Enhanced diversification
Active tactical positioning
Quantitative investment approach
How we do it
Over time, the portfolio’s risk assets are expected to generate a premium, or excess return, to cash. But each asset earns its premium at a different phase of the economic cycle. With this in mind, we employ long and short positions to capture positive performance in both rising and falling markets with little to no correlation to broader capital market indexes. Through rigorous, quantitative top-down fundamental analysis, the portfolio systematically adjusts long and short positions across stock, bond, and commodity markets to optimize risk/reward exposures based on changing market conditions.
More from this asset class
We combine investments across equity, fixed income, currency, commodity, and alternative investment asset classes to develop balanced and multi-asset strategies. Read more about our multi-asset options for institutional investors.
