Tag Archives: LDI


DITMo: Hedging without Shorting?

by Peter J de Marigny, DITMo Capital, Newport Beach, CA In a bull market hedged portfolios generally underperform.  The problem for most investors is that reducing risk requires forgoing upside benefit.  Should reducing risk be a question of diversification only?  This is an approach of many financial advisors using mean variance historical returns to show an “efficient frontier” curve.  The […]

DITMo: Why Risk Parity Hedge Funds are Return Parity Vehicles

  As hedge funds increasingly employ new approaches to asset allocation there has been a rise in the use of Risk Parity funds.  The vulnerability of Risk Parity funds is that they allocate by risk rather than by value. That is actually a bet on whether equities will outperform the return of additional risk adjusted asset class allocations utilizing leverage. […]