This podcast episode dives into the world of equity portfolio hedging, highlighting the importance of balancing potential returns with risk management. It presents different hedging strategies, exploring their benefits and limitations, and suggests a quantitative tool-based approach that overcomes the drawbacks of traditional methods. This approach allows for customized hedging without interfering with long alpha positions, enhancing portfolio resilience to factor and sector rotations. By using tailored hedges and considering financial circumstances and objectives, investors can significantly improve their portfolio performance through effective risk management.
