Learn about several key philosophical and definitional issues related to risk premia investing.
Founded on the philosophy that investors are compensated for bearing risks, our Liquid Alternatives approach seeks to generate risk-adjusted returns by investing in a diversified portfolio of risk premia. Over a long horizon, investors’ ability to identify and harvest a diverse set of risk premia can enhance performance outcomes and improve portfolio diversification. This approach offers a liquid, transparent, alternative strategy — a complement to existing alternatives (such as hedge funds).
Portfolio Manager, Diversified Alternatives John Fujiwara explains why the combination of inflation and illiquidity could upset markets in 2019 and why many high-beta strategies may be at risk in markets where higher volatility and lower correlations are the norm.