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Improving Returns by Decomposing Risks

Written by Terry Flanagan | Mar 11, 2015 3:23:57 PM

Traditionally, investors have sought to isolate alpha in a long/short equity strategy by shorting index futures. With the continued growth in ETF trading, investors could get more granular with their hedging by using ETFs to mitigate sector or industry exposure. Optimized custom basket swaps could be the next generation of portfolio hedging.

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