{"id":3866,"date":"2006-01-18T00:00:00","date_gmt":"2006-01-18T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-funds-reduce-portfolio-risk","status":"publish","type":"post","link":"https:\/\/www.hedgeco.net\/news\/01\/2006\/hedge-funds-reduce-portfolio-risk.html","title":{"rendered":"Hedge funds reduce portfolio risk"},"content":{"rendered":"<p>  <span class=\"ArticleBodyText\">IPE.com &#8211; Using hedge funds can halve the probability of extreme loss in a portfolio, according to a new study from Edhec Risk and Asset Management Research  Centre.<\/span><\/p>\n<p>  <span class=\"ArticleBodyText\">Rather than consider hedge funds as a separate asset class, the study \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 The Benefits of Hedge Funds in Asset Liability Management &#8212; says they should be treated as a  complementary management style to asset classes such as equities and bonds.<\/span><\/p>\n<p>  <span class=\"ArticleBodyText\">\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cIn the past, hedge funds have been considered to give alpha benefits for asset managers,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d says Peter O\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2Kelly, marketing manager, Edhec Risk and Asset Management  Research Centre. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cBut their main benefit is to reduce risk by diversification, particularly since they are not correlated with other asset classes. So rather than look for absolute returns from  hedge funds, managers should be thinking in terms of using them to diversify the portfolio and reduce volatility.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d<\/span><\/p>\n<p>  <span class=\"ArticleBodyText\">The study\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s authors, Lionel Martellini and Volker Ziemann, say: \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cIt is possible to construct diversification benchmarks that allow the risk related to holding stock or  bond portfolios to be reduced in a very significant and robust way, by a) appropriately selecting the alternative strategies and b) optimising these with proven techniques.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d<\/span><\/p>\n<p>  <a href=\"http:\/\/www.ipe.com\/article_default.asp?article=20112\">Read Complete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>IPE.com &#8211; Using hedge funds can halve the probability of extreme loss in a portfolio, according to a new study from Edhec Risk and Asset Management Research Centre. Rather than consider hedge funds as a separate asset class, the study [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-3866","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/3866","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=3866"}],"version-history":[{"count":0,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/3866\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=3866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=3866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=3866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}