DGAM mixes a cocktail of idiosyncratic risks and good old hedge funds
Thu Mar 3, 2011
Diversified Global Asset Management stocks up on tail hedging in its risk management arsenal
By Claire Makin
Most fund of fund managers avoid innovative strategies on the grounds that they are too risky, and may have limits to growth. But Diversified Global Asset Management believes that risks may be responsibly managed if they are understood, and sees ample growth potential in the sector. “Most of these strategies are marginalised because they’re complex, not because they’re constrained,” says George Main, chief executive officer of the Toronto and New York-based firm.
David Hay, George Main, Lindsay Holtz, Warren Wright, and Ryan Barry
For managers who can handle the complexity – and DGAM counts itself among them – emerging strategies are where investors can often reap the richest rewards, according to Main and his team. Some of them, such as pharmaceutical royalties or commercial litigation financing, are hard for investors to access and require specialist knowledge.
Although DGAM is known for its focus on ‘idiosyncratic’ risks, it is...
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