Absolute Return Overlay Solutions: The Best Hope?
Our GMS team discusses the potential benefits of portable alpha overlays, which can meaningfully enhance returns over strategic allocations.
A systematic framework using a mix of fundamental and market-based factors may successfully identify market mis-pricings and capture available risk premia over time.
A fundamental understanding of the drivers of returns determines the most suitable set of factors for each asset class.
A disciplined risk budgeting approach to portfolio construction allocates to individual diversifying return drivers to maximize risk adjusted returns with low exposure to traditional asset class risk.
The modular approach allows for transparent and flexible portfolio solutions incorporating both absolute and total return elements.