Building a Multi-Strategy Portfolio

OpinioPro Selection
By September 27, 2022 13:14

Building a Multi-Strategy Portfolio

How can concepts like diversification, risk targeting and risk management help build robust multi-strategy portfolios? And how can they be applied in practice? 

Constructing a robust portfolio is not easy. Even if you expect a relatively benign economic and market environment for the next few years, how do you reflect that in a portfolio? Overweight risk assets, perhaps – but which ones and in what proportion? Do you hold any mitigating assets to try to guard against downturns? If you are less confident in your outlook, this question becomes harder, possibly requiring you to reallocate assets as the environment develops. Multi-strategy portfolio managers contend with these problems on a much larger scale. How do you construct a portfolio with hundreds of strategies across multiple asset classes, each with a different risk/return profile? In this article, we aim to explain how to construct a multi-strategy portfolio, how managers can enhance the process of allocation and the challenges to be aware of when building such a portfolio

OpinioPro Selection
By September 27, 2022 13:14

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