Breaking Down Exposures Essential To Direct Premia Exploration

In the lead afternoon slot on Day 2 at Global EQD 2017, Risk Premium Investment Management CEO Maarten Nederlof and The University of Chicago Office of Investment’s Ari Paul delivered a message to institutional investors: assess the alternative beta being delivered alongside alpha by your current hedge fund managers. Investors who develop a keen awareness of their implicit and explicit risk premium exposures can supplement or correct them as desired by allocating to specific strategies. This allows them to continue to work with the alpha-generating managers in whom they have the highest confidence and reduce the risk of “throwing out the alpha baby with the hedge fund bathwater.” Rob McGlinchey reports.