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Alternative risk premia – efficient access to liquid alternatives

Alternative risk premia strategies generate returns beyond equities and bonds, in a cost efficient and consistent manner. Investors benefit from the genuine diversification offered by four distinct investment styles which are well-balanced and adaptive to a wide range of economic and financial market conditions.

Alternative risk premia arise from the unemotional, rule-based accrual of economically sound risk premia and from exploiting a multitude of behavioral biases that all too often constrain investors’ realized returns.

In essence, alternative risk premia strategies seek to combine the best of traditional and liquid alternative investments by blending the desirable risk-return profiles expected from hedge funds with the economic rationale, exposure transparency, scalability and liquidity of traditional investments.

At LGT Capital Partners, alternative risk premia are extracted from equities, bonds, commodities, currencies and precious metals using robust, rule-based strategies. Strategies with similar payoff profiles are then aggregated into four distinct investment styles. Each investment style, however, is in itself well-balanced and diversified in terms of underlying asset class, geography and strategy exposure: 

  • Tactical: rotational and seasonal long-only strategies
  • Convergence: relative value, spread and contrarian strategies
  • Momentum: trend-based directional long or short strategies
  • Long Volatility: tail risk strategies for phases of elevated market stress

The styles exhibit low correlation to one another and are able to navigate through the ever changing environment by continuously adjusting their risk taking to prevailing conditions. The four investment styles are bundled together with rigorous risk controls to form an adaptive, all-season flagship program.

Both institutional and private investors can access our all-season flagship program which is available as a UCITS fund with daily liquidity and invested in listed instruments only (FASB No. 157 Level I assets).

The flagship program is available in two versions for different investor needs:

LGT Alpha Generix Global Return
Designed to substitute an equities allocation with an expected 10% annualized volatility

LGT Alpha Generix Global Income
Designed to substitute a fixed income allocation with an expected 5% annualized volatility 

Contact us to find out more about LGT Alpha Generix investment solutions and to discuss your requirements.

 

 

Contact us

LGT Capital Partners Ltd.
Phone: +41 55 415 9600

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