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Strategies

LongTail Alpha’s sole focus is to find value in the tails of financial asset return distributions. Either in the left tail as a risk mitigation hedge on multi-asset portfolios, in the right tail to add convexity to an investor’s risk exposures, or in both the right and left tails to produce alpha from convexity and volatility opportunities in a hedge fund structure.

Our approach to portfolio construction relies on understanding the hidden risks of portfolios, which are rarely static and homogeneous. We believe that armed with an understanding of rare but severe events and their relationship to how markets price such events can help to add substantial value over time.

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