Global EQD Profile: AQR’s Israelov On Allocators’ Volatility Risk Premium Appetite

Asset allocators are increasingly looking to harvest volatility risk premium, using covered call or put writing strategies, or allocating to the risk premium within their alternatives portfolio, and are appointing external managers to run these strategies given their expertise in options strategies. Roni Israelov, a portfolio manager at AQR Capital Management, told EQDerivatives on the sidelines of Global EQD 2016 that many allocators who are seeking diversification for their equity-concentrated portfolios remain under-exposed to this alternative source of return.