Scenario analysis

Hedge Funds

Conservative options face grim five-year forecast

A scenario analysis tool developed by Frontier Advisors is confronting superannuation funds with the likelihood that their return objectives could be difficult to achieve over the medium term. The consultant has been offering its web based Prism tool to clients since April to allow them to carry out stress testing of portfolios and to see […]
Hedge Funds

Telling tales trumps abstract facts

Scenario analysis can be a useful tool in determining investment strategy, but it is not easy. It certainly involves more than good and bad perturbations around a base case. Excellent scenario analysis requires deep thinking and imagination to create a set of plausible futures. Each scenario does not have to be likely, but if it […]