What's in a hedge?

An intro to the science, art, and limitations of finding single name & portfolio-level equity hedges

In this webinar with Arcana Analytics, we explored the critical role risk factor models play in effective hedging and the quantitative methodologies that separate successful hedge construction from simplistic correlation-based approaches.

Drawing on our collective experience working with portfolio managers, CIOs, risk managers, and capital allocators across leading asset managers, hedge funds, and asset owners, we addressed the delicate balance between theory and practice in building hedging solutions that are actually effective.

What you’ll learn:

• How to think about constructing hedges: When to hedge and why, necessary tradeoffs and common pitfalls
• Quantitative analysis for hedge efficacy: A walk-through of proven methodologies to measure whether your hedges actually work
• Pre-existing vs custom-built solutions: What are the potential benefits of building custom basket hedges as opposed to pre-existing instruments like ETFs or pre-built baskets?
• Real-world applications: See how hedging works on a single stock and at the portfolio level
• Deviations in practice: Understand the limitations and where things can go wrong