Tail risk gets investors in a spin
Tue Jun 5, 2012
Tail-risk strategies are akin to insurance – something that should pay off big-style when there is a major market event
By Neil Wilson
With the ongoing political and economic crisis in the Eurozone
putting the markets back in a panic, it is not surprising there
has been such a surge of interest in so-called 'tail
risk’ hedging strategies – whether
offered by investment banks or, increasingly, by hedge fund
Volatility and tail-risk strategies together still represent
only a tiny proportion of total assets in hedge funds, but they
have clearly been much more on the radar screen for investors
ever since the credit crunch and ensuing financial crisis of
2008. However, whether – and/or when – they
offer genuine value to investors is something still to be
At our recent EuroHedge Summit in Paris, we closed with a
panel session on volatility and tail-risk strategies –
providing an opportunity for a group of managers and experts in
the space to debate. And one of the first things that came
ISSN: 2151-1845 / CDC10004H
The full contents of this article are available to active InvestHedge subscribers and trialists only.
TAKE A FREE TRIAL
To continue reading please, take a free trial, subscribe or log in to InvestHedge.
Subscribers have unlimited access to all current content, including fund performance Live League Tables. Start your subscription today - click on the button below.