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CUSTOMIZED TWIN TAIL ALPHA HEDGING

Combining Left Tail and Right Tail into a single non-discretionary strategy can provide asset protection at the same time as enhanced alpha generation.

A rule-based strategy customized to meet an institution's risk tolerance levels will allow for portfolio hedging while positioning the portfolio for potentially outsized gains by systematic profit-taking during downturns directed by a predetermined rule-based system.

 


Monetizing the returns on put hedges can be done through rebalancing into cheaper hedges, investing in S&P futures, ATM calls, or by shorting puts to lock in gains.  The non-discretionary strategy is preset to meet your institution's risk tolerance levels.

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