EAB analyzes the portfolio construction and historic return streams in order to optimize performance and effectiveness of a custom hedging solution. Through our proprietary systems and process, we are able to provide proof of concept to clients and manage expectations.
EAB works with investment companies to combine their core investment process with a custom proprietary hedging strategy. Strategies are intended to maximize risk adjusted returns and efficiently mitigate downside risk.
Risk Management and Volatility Analysis
EAB uses F(t) Options best of breed risk management technology and extensive volatility database to identify risk and analyze option valuation using proprietary techniques. EAB deploys and manages various tactical and systematic strategies used to mitigate risk and add Alpha. All strategies use an "edge" driven approach to investing.
EAB works closely with the portfolio manager to understand the investment thesis and return objectives. EAB treats the hedging process as a profit center rather than a loss leader. The goal is to reduce portfolio risk and increase the probability of success.
Direct hedging is the process of implementing hedging structures with high correlations to the underlying security. The advantage of this type of approach may be more predictable outcomes because of a lack of correlation breakdown during stress events.
EAB Investment Group offers a basket of market hedges designed to protect against systemic risk and tail events. The objective is to provide efficient and cost effective hedges with minimal correlation to flat and up markets. The concepts are well researched, theoretically based, and intuitively executed against historical data on liquidity and crisis-sensitive assets. We work with clients to determine which risk assets could produce the most desired results depending on their underlying portfolios.