Approach
What Makes Us Different
Many approaches to tail risk hedging involve a persistent cost in exchange for protection during market dislocations. If not carefully structured, the benefits realized during periods of market stress may be insufficient to compensate for performance impacts incurred during more typical market environments, reducing the effectiveness of tail risk hedging over full market cycles.
Ambrus employs several proprietary strategies that our portfolio managers have developed and actively traded for over a decade. These strategies are designed to generate consistent returns that help offset the cost of maintaining meaningful exposure to convex equity derivatives that benefit from volatility.
Importantly, these proprietary strategies are constructed to contribute positively to portfolio performance while remaining disciplined in their risk contribution, allowing tail protection to be maintained without materially increasing overall portfolio risk.
Why Do Investors Approach Us
Investors value tail risk protection for several reasons:
Family Office
Has significant equity exposure and needs to protect the family’s equity assets from a crash for their peace of mind. Preserves wealth for the next generation.
Individual
Needs protection against market crashes that could come at inopportune times in their life and reduce their options. Allows them to keep their current lifestyle now and during retirement.
Asset Manager
Wants to avoid reputation damage and investor outflows during crashes. Gets a large reputation boost and takes unsatisfied clients from unhedged managers. Adds a cost-effective hedging product to their menu of investment options.
Foundation
Needs to preserve capital so they can meet their philanthropic commitments. Needs stability so they can make future philanthropic commitments.
Opportunistic
Believes a crash is likely in the near future.