Tail Risk
Hedging tail risk - a form of portfolio risk arising from statistically significant moves by an investment from the mean - is one of today’s most pressing concerns in portfolio management. We believe that AVM is one of only a handful of financial institutions equipped to hedge tail risk successfully.
A variety of factors makes this possible, and set us apart from the competition:
- Each AVM hedge is uniquely designed for a specific client portfolio.
- We constantly scour the markets to find the most favorably priced options, which enable us to construct risk protection profiles that best accommodate our clients’ tail risk hedging needs.
- Our hedges are dynamically managed to minimize theta decay.