| Hedge |
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Many investors throughout the world have identified alternative energy and renewable resource investing as the most interesting and potentially lucrative sector going forward. However, hedging a portfolio of fundamentally long equities has historically proven both difficult and expensive.
Strategic allocations are made to investment strategies that are likely to produce positive performance during extreme periods of volatility and equity drawdowns. This allows us to capture "portfolio insurance" during times that the rest of the portfolio is going through natural periods of equity downside. Rather than being a cost drag on the overall portfolio, our hedging strategy can add alpha to our portfolios as a whole. Our hedge portfolio is emblematic of the active risk management employed at Global Fund Exchange. |