
Tell Tail Signs: Thank You, Fed – At Least For Now …
Each month, the Adaptive Multi-Asset Solutions Team provides an asset class outlook using option market prices to infer expected tail gains and tail losses.
Janus Henderson offers various multi-asset investment solutions. More specifically, our Adaptive Multi-Asset Solutions Team focuses on maximizing compound returns by mitigating large tail losses and profiting from large tail gains. We believe a distribution of returns, as a measure of risk, is important in determining terminal value, with tail risks — both positive and negative — playing a critical role.
Daily forward-looking estimates of tail losses and tail gains for major asset classes are derived from option market prices. These estimates form the basis for a dynamic asset allocation approach aimed at mitigating material losses from systemic shocks while capturing upside gains.
Learn why an adaptive allocation approach can be designed to maximize compound returns while mitigating acute tail risk.
August 2018