We offer our clients turnkey, as well as bespoke hedging and market/investment risk management solutions covering the following areas:
- Hedging advisory services.
- Hedging and market/investment risk management program design and management.
- Hedging strategies and structuring.
- Trade execution.
- Front-office, middle-office, and back-office operations.
- Research & Analysis
Our unique edge comes from the fact that our hedging and market/investment risk management strategies are “informed” strategies in the sense that they employ our proprietary highly reliable outlooks to decide on the best time windows and price levels to build our client’s hedging position with the goal of maximizing their benefit. As a result, we believe that no one in the industry can come even close to the effectiveness of the hedging and market/investment risk management solutions that we offer our clients.
Within the context of our Informed Hedging & Market/Investment Risk Management solutions, we typically recommend to our clients a Dynamic Hedging Strategy that employs our proprietary market analysis and outlooks over a Static Hedging Strategy unless the client has strong reasons to the contrary. The difference between the two is as follows:
- Dynamic Hedging Strategy
In a dynamic hedging strategy, we actively enter and exit the client’s hedging position based on our analysis and outlooks with the aim to maximize the client’s benefit both from the upside as well as from the downside. In this strategy, the client is only hedged in adverse market conditions. However, when our outlooks and analysis indicate that the market will turn in our client’s favor, we unwind the client’s hedge to realize the profits.
- Static Hedging Strategy
In this type of hedging strategy, the client is interested in remaining hedged for the total duration of the hedging period or until the client decides to unwind the position either partially or fully. It is therefore mainly focused on building the hedging position over time. We still use our proprietary analysis and outlooks to decide on the best entries in this case too but, once the position is built, it remains intact until the client’s exit conditions are met.
To simplify, you can think of a Static Hedging Strategy as being similar to a buy-and-hold strategy in the stock market, whereas the Dynamic Hedging Strategy would be one where our client’s portfolio is actively managed to maximize our client’s returns.
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