(Harvest) Interest concerning alternative risk premiums has surged over the last few years. With this increased interest there has been questions with how to best access these premiums under real market conditions and not just measure them through existing asset classes. Investors want to know how to operationalize the theory and research. Risk premiums can be obtained directly through two alternatives: access through total return swaps from banks or access through systematic quant managers who construct risk premium strategies. The choice between swaps as pure beta products and risk premiums embedded in quant hedge funds can be broken into a number of value propositions. This decomposition can make it clearer for investors to determine which is the best method for access.
Risk Premium and Betas – What Do You Get From Quant Managers
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