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Hedged Equity

LFIS’ hedged equity strategy offers exposure to the upside of equities while cushioning the downside.  The strategy is therefore a potential solution for investors looking to hedge their tail risk on equities and/or to maintain or increase equity exposure in a low-yield environment.

Asymmetric Exposure to Equity Markets

LFIS’ "Equity Defender" approach is aligned with both the macro context of low interest rates and quantitative easing in Europe and today’s regulatory environment where capital is an integral part of many investors’ risk-return analysis. Our strategy answers the needs of today’s investors to capture potential equity market performance with some protection from the risks.

Edouard Laurent-Bellue – Head of Multi-Asset and Fund Solutions

LFIS offers a hedged equity strategy designed to offer investors asymmetric exposure to the performance of equity markets.  Our simple, transparent and systematic approach seeks to allow investors to participate in all or part of the upside in equity markets while diminishing the volatility and the sharp drawdowns (both over the medium- to long-term).

For insurance companies, in particular, LFIS’ systematic approach may effectively reduce the solvency capital requirement of their allocation to equities under the Solvency II Directive.

The strategy is implemented by LFIS’ experienced Multi-Asset and Fund Solutions team team which includes experts in derivative-based fund strategies and is available in a UCITS format.
 

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