Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

15935

LOIM launches diversified Alternative Risk Premia

RELATED TOPICS​

Lombard Odier Investment Managers (LOIM) has built a long/short strategy across asset classes aimed at improving risk-adjusted returns with a low correlation to traditional investments.

LO Funds – Alternative Risk Premia, a long/short fund, is designed to help in today’s environment of declining markets and uncertain prospects, where investors find the search for returns increasingly hard. Investors also need liquidity and cost-efficiency from their portfolios and know that exposure to traditional asset classes may correlate just when they need to be diversified.
 
By applying an Alternative Risk Premia approach with the ability to go systematically long and short, LOIM offers a strategy aimed at enhancing risk-adjusted returns from traditional asset classes in a stable way within an investment structure that aims to provide robust portfolios, however markets perform.
 
“Alternative Risk Premia used to be available only from hedge fund firms,” says Carolina Minio-Paluello, deputy chief investment officer of LOIM. “We can offer similar benefits for investors’ portfolios in a cost-effective and systematic way. Our teams have the expertise and experience to implement long/short strategies using these techniques.”
 
The risk premia draw on two complementary sources of return: income and trend. Income tends to deliver a regular yield flow in stable and improving markets while trend premia have the ability to go against the market and aim to reduce exposure to market drawdowns. An example of an income risk premia is ‘carry credit’ which aims to exploit the yield difference between the investment grade and high yield corporate universes. In unchanged market conditions, investors may benefit from the higher credit spread of the high yield. A trend premia uses momentum signals within defined time frames to take long or short positions in a diversified set of assets.
 
“Five years ago we developed a risk-based portfolio construction infrastructure, initially for long-only, diversified smart beta,” says Alexandre Deruaz, head of smart beta solutions at LOIM. “We can now also apply it to our long/short approaches.” 

Latest News

EFAMA has commented on today’s vote by the European Parliament in favour of a new..
Morgan Stanley Investment Management (MSIM) has announced the launch of the MS INVF Systematic Liquid..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins..

Related Articles

Juan Nozal, Mapfre Asset Management
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024, in what he predicts will be an outstanding year for this asset class...
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024,..
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US are committed to implementing a variety of measures to address climate change and reach their net-zero goals, according to Cerulli Associates...
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US..
Lord Hollick, House of Lords
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with genuine independence from government and how they are held to account...
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with..
Rob Edwards, Morningstar
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed bag in 2023...
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by