Investors Have A Larger Risk Appetite After A Year Of Unsuccessful Hedging, Vol Manager Says

Investors are less interested in buying hedge protection and have more of an appetite for risk, said Jim Carroll, senior vice president and portfolio manager at Toroso Advisors. After a year of drab returns for some tail hedging strategies, Carroll’s asset allocation models are now signaling a risk-on appetite for the international markets. The market may be a little under hedged at the moment because of the underwhelming performance of tail hedges last year, he said.