Systematically selling put options is a popular investment strategy in the liquid alternatives space. However, risk and returns vary widely depending on configuration choices, most importantly, the options' strikes and time to maturity. We have #backtested dozens of short-puts and calendar spreads to help our clients understand these strategies' behaviour better.
Following EU authorities, the SEC is stepping up its ESG investing regulation. Despite the themes’ relatively poor recent performance, there is no way around the topic in the medium term. This makes sufficient governance of ESG investment processes, and marketing claims all the more important. Our article argues that there will always be a great degree of judgment involved in ESG investing, particularly in public securities. For Wealth Managers, this offers a great chance to add value through customization and honest advice on the opportunities and limitations of ESG.
Many investors are uncomfortable with significant lump-sum investments in risky assets. It is therefore often recommended to stagger the market entry. While this strategy sounds intuitive, we asked ourselves how effective it really is in reducing downside risk and improving an investor’s risk/return profile. We, therefore, studied the distribution of rolling 5-year returns of one-time and phased investments in the S&P 500 over several decades. The results are somewhat surprising.
What would the grand seigneur of economic liberalism say about the ESG (Environment, Social, and Governance) trend in today's investment industry? This month's paper looks into the discussion about the "purpose of business" and puts Friedman's often misunderstood critique of Corporate Social Responsibility into perspective. Beyond that, we elaborate on our philanthropic activities, providing some information on the background and work of the L'Association Suisse pour la Recherche sur l'Alzheimer (APRA).