Managing Downside Risk with Global Macro Strategies

Amid concerns about potentially unsteady and down markets, we believe two of the strategies employed by global macro managers are particularly worthy of consideration today: tail risk and long volatility.


Risk as a starting point — not an afterthought

Dazzling investment returns make good headlines─as do spectacular investment crashes. But seldom do we read stories about funds that excel in controlling volatility while delivering strong, competitive returns. Yet managing volatility is the key to surviving a sharp market downturn.


Long-Short Equity Strategies - "Hedging" Your Bets

Faced with market uncertainties, investors may be seeking ways to de-risk. Long-short equity strategies have the potential to provide steady gains even in down markets.


Lessons from a 21-year-old Warren Buffett

Investing in high-quality companies—at the right price—may grow investors' wealth while potentially providing a level of reassurance in falling markets.


Alternative Risk Premia: Taking Control of Your Exposures

ARP have the potential to mitigate downside risk, while in many cases still generating positive returns in a liquid and costefficient way.


The Real Problem with Low Yields

Fixed income plays a special role in managing risk because it tends to be a safer, more liquid and less volatile asset. We still think that is largely true, however, there is a catch. Traditional bond strategies may be less effective in acting as a hedge and also have less appreciation potential than when yields were higher.


Our Formula for Earnings Resilience

In our view, "the formula" for successful investing consists of two critical elements: pricing power and recurring revenues.

Investing involves risk including the possible loss of principal. There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market.

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