LFIS: Investors do not have to sacrifice liquidity for diversification in multi-asset investing.
LFIS’ senior portfolio managers on how simple derivatives strategies can transform the profile of equity markets and the diversification benefits of premia investing in Funds Europe.
Per Funds Europe, an issue with alternatives such as real estate, private equity etc. is liquidity and strategies that provide both diversification and liquidity “may sound like the Holy Grail.” LFIS’ Head of Fund Solutions, Edouard Laurent-Bellue counters this with our differentiated approach to multi asset and equity investing. For example, how using simple derivatives strategies like put-selling allows for performance in stable as well as rising markets, and remains very liquid when implemented on major equity indices. LFIS’ Head of Factor Investing, Luc Dumontier views alternative risk premia approaches as another potential solution. A diversified premia approach, which combine long and short positions across asset classes to capture structural market premia (rather than investing in asset classes) is another alternative for investors looking for more liquid diversifying strategies.