While Alternative Risk Premia strategies offer the potential for uncorrelated investment returns, investors should be cautious of strategies that are over-reliant on algorithms driven by historical data. This is especially true today as Covid-19 renders yesterday’s data-sets unreliable predictors of tomorrow’s risk and returns.
Truly unprecedented market environments increase the importance of human judgement in distinguishing between historic relationships that are likely to persist and those that are temporarily or permanently impaired.
Learn about:
- Background of Alternative Risk Premia (ARP) in theory
- Incorporating qualitative judgement and quantitative tools
- Encompassing holistic risk management in portfolio
- Selecting ARP strategies for inclusion in prevailing market environment