The US Federal Reserve’s pivot to a liquidity-induced market environment over the past few years has not been conducive for many strategies and managers. The period of subdued volatility followed by COVID-19 caught many systematic and discretionary managers off guard. What strategies outperformed and where is extra due diligence required?
Speakers:
Sara Rejal, global head of liquid diversifying strategies, Willis Towers Watson
Michael Sommers, principal consultant, Frontier Advisors
Moderator: Laurence Parker-Brown, institutional content producer, Conexus Financial
Key Takeaways
- Investors need to build an absolute returns strategy that suits their thinking about portfolio construction; this feeds into their willingness to accept stable or asymmetric returns streams and the conviction that they are willing to delegate to the manager.
- The recent COVID market sell down in March has resulted in many investors re-evaluating their investment time horizon and whether tail hedging is appropriate.
- To build a successful partnership with an asset manager, investors need to consider the culture fit – particularly when due diligence is restricted due to travel restrictions.
Poll results
ESG is important to my fund and I would like to see it feature prominently within liquid macro strategies…
