Alpha-Centric Investing: Not Just for Institutions Anymore

Retail Investing 16 Dec 2006

Event: Bringing Academic Insights to Wealth Management and Investment Management

Dates: March 13-14, 2007
Location: Geneva
Organized by: EDHEC Risk and Asset Management Research Centre

For those who don’t believe new asset management techniques such as ALM, portable alpha, and hedge funds have any role in private investors’ portfolios, check out this recently-announced event in Geneva next year.  We agree that these investment concepts are usually greeted with glazed eyes and a sense of skepticism by most private investors.  But mutual funds draw the same response 30 years ago.  And today private investors buy and sell billions of dollars of mutual funds every day.  We believe that every new institutional investing concept eventually makes its way to the private client market in some form.

Below are a few of the topics being covered at the event  As you read this list, bear in mind that this is targeted at a private wealth management audience, not the usual institutional audience:

  • How to model the constraints and ‘liabilities’ of private banking clients
  • Limitations of current ALM-type tools used by private bankers: going beyond the investor’s risk profile
  • State-of-the-art ALM techniques applied to wealth management
  • Alternative diversification: how to optimally incorporate new asset classes (private equity, real estate, commodities, hedge funds) into portfolios
  • Potential of derivatives for wealth management
  • Dynamic core-satellite investing and non-linear management of return profiles: from absolute to dissymmetric returns
  • Dynamic portable alpha strategies
  • Portable alpha with ETFs
  • Portable beta with ETF
  • Definitions of alpha
  • Each beta will have an implied alpha
  • Extraction of alpha
  • Why alpha in hedge funds?
  • Suitable sources of alpha
  • What/How alpha is transported?

Maybe Edhec is too far ahead of its time.  Maybe the attendees at this event will be the usual quasi-institutional family offices that line Geneva’s streets.  Or maybe Edhec will find itself acting as mid-wife to the birth of alpha-centric investing in the private wealth management arena.  In any event, they deserve kudos for challenging this segment of the market to integrate these new ideas – in whatever form – into their investment strategies.

Read Conference Programme

Be Sociable, Share!


Leave A Reply

← Note to Bloomberg: Chet Currier is a very smart man. ETFs and Hedge Funds: Separated at Birth →