White paper

Aug. 30, 2019

New Risk Metrics for a New World

White Paper — Overview

There was an increased demand for alternative investments with low correlations after the 2007-09 financial crisis. With that came unclear direction with how to measure an alternative fund’s performance and risk. 


If an alternative fund is supposed to behave differently than the market, then does comparing it to the S&P 500 index make much sense? Further, the traditional risk and return metrics prove limited to helping assess how these new funds may be able to minimize losses, mitigate risk, and provide consistent returns.


There are a handful of little-known risk metrics that can be very helpful in assessing investment choices, especially those involving alternative funds. 


We’re committed to helping redefine the conversation about risk and portfolio construction, so Marc Odo, CFA®, CAIA®, CIPM®, CFP®, Client Portfolio Manager, explores these risk metrics and analyzes how they can be used to measure the effectiveness of strategies that are fundamentally different than a capital market index.