The fixed-income and equities markets have extended their bull run but their momentum is beginning to fade. With valuations high and risks ahead, investors should look to an alternative exchange traded fund strategy to hedge their portfolios.
On the upcoming webcast, Look to Alternatives as Traditional Stocks, Bonds Run on Fumes, Jillian DelSignore, Executive Director and Head of ETF Distribution at J.P. Morgan Asset Management, Yazann Romahi, Portfolio Manager and Head of Global Multi-Asset Research in the Multi-Asset Solutions Team at J.P. Morgan Asset Management, and Mark Matthews, Investment Research Analyst at CLS Investments, will outline various alternative strategies and ways the asset category can provide uncorrelated returns to traditional bond and stock investments to diversify a portfolio.
For instance, the recently launched JPMorgan Diversified Alternatives ETF (NYSEArca: JPHF), J.P. Morgan’s first actively managed ETF to hit the market, combines various hedge fund-esque, alternative investment strategies in an easy-to-use ETF wrapper.[related_stories]
Specifically, JPHF will include equity long/short, event driven and global macro based strategies. The fund is managed by Rohami and Victor Lee, Managing Director and a Regional Specialist at J.P. Morgan.
The equity long/short strategy involves simultaneously taking equities that are attractive based on relevant return factors and selling equities that are unattractive based on relevant return factors. The long/short strategy will try to produce alpha through exploiting pricing inefficiencies between equity securities through long and short positions.
The event driven strategy will try to profit from companies on the basis that a specific event or catalyst will affect future pricing. For example, merger arbitrage strategies try to capitalize on price discrepancies and returns in corporate transactions.