looking beyond traditional asset classes for return and diversification.

The world has changed and investors are finding it increasingly challenging to find return from the traditional asset classes. With higher correlations between asset classes it has also become harder to find diversification.

Alternative Risk Premia are sources of return that can be captured systematically through various investment strategies, not stemming from traditional asset classes. They can offer uncorrelated sources of return with the potential to enhance returns in an investor’s portfolio.

At Lombard Odier Investment Managers we categorise Alternative Risk Premia into two distinct, complementary sources of return: Income and Trend. These exhibit complementary behaviour depending on market conditions; by combining them we believe we can target smoother returns that are less exposed to drawdowns and to the specific risks linked to individual strategies.

We employ a systematic investment approach to achieve this aim, whereby portfolio allocation is driven by a risk-based process. The strategy offers investors daily liquidity and can be tailored according to an investor’s risk and return objectives.

 

Alternative Risk Premia are sources of return not stemming from traditional asset classes These can be systematically captured and offer the potential to enhance returns.

 

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Alternative Risk Premia are sources of return not stemming from traditional asset classes These can be systematically captured and offer the potential to enhance returns.