Investing in hedged equity strategies is a bit like running with the bulls: investors love the adrenaline rush of the market returns but are also required to stay nimble to avoid being trampled. Investor demand for products that hedge or mitigate equity market risk has existed for a long time. Traditional offerings have ranged from static asset allocation approaches to an active long/short equity investment strategy. We believe in keeping things as simple as possible but not simpler, and that a successful equity investment strategy boils down to two fundamental styles: systematic beta management and factor-based stock selection.
NorthCoast’s take on equity hedged strategies and how they stack up against each other.