Hedging Overlay
BERYL HEDGING OVERLAY We believe in combining expertise in manager selection with hedging of systemic portfolio risk. Hedge fund portfolios carry systemic risk. Resulting exposures are often non-linear. This type of non-linear behavior is very similar to the non-linear payoffs available in options markets.
The program is designed to hedge portfolio betas, re-configure risk profile, add alpha, and free up capital through derivatives. Liquid exchange-traded options can be used to re-configure, hedge, and dynamically manage the payoff profile of the portfolio without moving capital in and out of underlying investments.The program allows the manager or a sponsor to bring portfolio risks to desired level and/or exploit tactical investment opportunities.
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