A thorough understanding of the risks from extreme market moves is essential to a realistic estimation of a strategy's risk/reward profile. Every market professional is aware that with risk come opportunities. In this paper, LJM Partners shows that a process can be built to use the heightened premiums of OTM S&P options to enhance returns.
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Pandemic Flu Preparation
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A global outbreak of influenza, such as that anticipated with this year's H1N1 virus, can have a major effect on all aspects of the world economy. Having a contingency plan can make a difference for businesses and individuals, says HUB International Personal Insurance, which offers suggestions for creating such a plan.
Lessons from the Financial Panic
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The financial crisis has altered the investment landscape for investment managers as well as for investors. This paper from BNY Mellon looks at the results, such as increased regulatory oversight and demands for greater transparency.
Individuals and businesses can control rising insurance costs only by being proactive and aggressive. This article from Rothstein Kass offers guidance in assessing directors and officers insurance, professional and management liability; key property and liability insurance issues; workers compensation, employee health benefits; and disability and business overhead insurance.
Fiduciary Risk for Trustees and Beneficiaries
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How do you know you are selecting the trustee that is best for your individual needs? What responsibilities does the beneficiary have? This 2009 FOX Fall Forum presentation outlines what it means to be an effective trustee and beneficiary, decision criteria for trustee selection, and the process and framework trustees and beneficiaries can employ to manage trust and fiduciary decisions at both the macro and micro level.
Direct investment in private companies can deliver returns far exceeding those of private equity and other asset classes while also providing attractive diversification and increased control. The potential for outsize returns, however, comes with increased risk, meaning investors must carefully assess the various financial, organizational and managerial risks involved in this type of investment.
Four basic hedging techniques – long/short, covered call, buy/write indexing and index put options – represent varying levels of risk but, used appropriately, may reduce portfolio volatility and smooth overall returns. Defensive hedging, techniques designed to protect against loss, may even be well-suited for cautious or conservative investors.
It is at the turning points, both market highs and lows, that investors can either increase or forfeit large portions of their portfolios. These are also the times when they can make the wrong decisions. But with the right frame of mind and a willingness to do what others won't, investors can take advantage of the opportunities created by volatile markets.
A Sound Business Continuity Plan for Your FO/MFO
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A contingency plan helps ensure that a single or multi-family office is prepared to deal with a disaster effectively, minimizing any financial loss, reputational damage, irreparable damage to fundamental operations and legal liability. Such a plan should address continuance imperatives in three fundamental areas: personnel performance, business processes and critical technologies.
Effective collections security is the application of general security practices centering on concentricity, redundancy and reliability. Ultra-wealthy collectors are wise to examine the relevant work experience of prospective vendors to determine both their credentials and their ability to protect valuable items.