Systematic Return Enhancement

Alternative risk premia strategies provide institutional investors with systematic approaches to capture return sources beyond traditional asset class exposures, potentially enhancing portfolio diversification and risk-adjusted returns.

Strategy Fundamentals

These strategies systematically harvest risk premiums across various markets and instruments, including carry trades, momentum strategies, mean reversion approaches, and volatility risk premiums. Unlike traditional hedge fund strategies, alternative risk premia can be implemented through systematic, transparent, and cost-effective approaches.

Research and Evidence Base

Our research examines the theoretical foundations and empirical evidence for alternative risk premia across fixed income, equity, currency, and commodity markets. We analyze the persistence of these premiums, their correlation characteristics, and their performance during various market regimes.

Implementation Framework

Implementation considerations include capacity constraints, transaction cost analysis, and the systematic approach required to maintain discipline during periods of strategy underperformance. We address portfolio construction methods for combining multiple alternative risk premia sources while managing overall portfolio risk.

Institutional Benefits and Requirements

Institutional investors benefit from alternative risk premia through enhanced diversification, reduced correlation with traditional asset classes, and the potential for consistent risk-adjusted returns. However, successful implementation requires sophisticated risk management, systematic execution capabilities, and understanding of underlying economic rationales driving these premiums.