About News Contact Video For Fund Managers Welcome, Guest! Create Account Login (0) Search INDICES DATABASE REPORTS Risk Mitigation Risk mitigation is a vital part of portfolio management and construction. Holding a large variety of equities and other asset classes across the entirety of the investment spectrum will provide an investor with the ability to mitigate a certain amount of risk. Diversification is the key to risk mitigation. However, the degree to which one diversifies their portfolio is paramount in achieving proper risk mitigation. Solely diversifying across equities isn’t enough as you are left with significant systematic risk. This is why it’s important to diversify among a number of different asset classes including alternative investments such as hedge funds. One of the best ways to mitigate risk is including hedge fund strategies in a portfolio. The value of using hedge funds to diversify is often understated. By adding hedge funds to an investment portfolio an investor can diversify away specific risk. Hedge Funds have very unique risk and return profiles compared to other investments, and generally a have low correlation to traditional asset classes. Hedge funds can significantly improve the efficient frontier of an investment portfolio by following specific strategies set out to produce substantially higher returns with much lower risk. Hedge funds implement a broad range of approaches and strategies, but a subset have certain risk mitigation characteristics. HFR’s Risk Mitigation Index selects a number of funds that exhibit these characteristics. For more information on Risk Mitigation strategies please contact INDICES@HFR.COM Examples of HFR Indices that employ Risk Mitigation strategies are listed below: Risk Mitigation INDEX NAME ROR INDEX VALUE YTD LAST 12M LAST 36M LAST 60M HFR Bank Systematic Risk Premia Equity Volatility Index › 0.58% 437.82 8.96% 9.80% -14.84% -11.45% HFR Bank Systematic Risk Premia Multi-Asset Index › 2.32% 2134.57 26.68% 49.03% 21.84% 12.99% HFRI 500 Macro Index › 1.56% 1311.53 9.44% 14.74% 6.61% 3.92% HFRI 500 RV: Volatility Index › 1.55% 1054.89 1.00% 0.95% 1.78% 1.50% TRENDING INVESTMENT THEMES Absolute Return Alternative Investments ESG Liquid Alternatives (Liquid Alts) Macro Factors Replication Strategies Risk Mitigation Synthetic Indices Trend Following HFR, Inc. 10 S. Riverside Plaza, Ste. 700 Chicago, IL 60606 312.658.0955 Contact Us Indices Database Reports About HFR News & Press Contact Us Media Contacts Careers ESMA Registration INDEX DATA USAGE NOTICE All data and content on the Hedge Fund Research® website and in the HFR Database products are for your informational and personal use only. The total return data provided on the HFR website, the HFR Database products, and the reports generated from them are for internal, non-commercial use only. The data is not sufficient, comprehensive enough or approved for use in connection with investment products or instruments. You may not copy, redistribute, sell, retransmit, or make the data available to a third party, or otherwise use it for any commercial or public purpose unless you have a separate written agreement with HFR. You require a written license from HFR to use the HFR data, HFR marks and names and/or HFR Index names, including but not limited to use in connection with investment products and instruments (regardless of whether such products or instruments are based on, linked to or track an HFR Index), the name of investment products and instruments, in prospectuses, marketing and other materials publicly or commercially disseminated, benchmarking purposes, and any SEC, government or regulatory filings. Please contact HFR for additional information at: INDICES@HFR.COM HFR (Hedge Fund Research) ESMA Registered Benchmark Administrator, ID#: IEC449613 HFR proudly supports the Managed Funds Association CONTENT DISCLAIMER This information is obtained from sources that HFR considers to be reliable; however, no representation is made as to, and no responsibility or liability is accepted for, the accuracy or completeness of the information. Information contained herein is subject to change at any time without notice. It is not possible to invest directly in a financial index. Exposure represented by an index is available through instruments based on that index. HFR does not sponsor, endorse, sell, promote or manage any investment products. © 2021 HFR, Inc. - All rights reserved. HFR®, HFRI®, HFRX®, HFRU®, HFRQ®, HFRL™, WWW.HEDGEFUNDRESEARCH.COM®, HEDGE FUND RESEARCH®, HFR IndexScope™, HFR Bank Systematic Risk Premia Indices℠ and HFR Risk Parity Indices™ are the trademarks of HFR, Inc. Market Data by Xignite Terms of Use and Legal Disclaimer Site Map Privacy Policy Index Complaints Twitter YouTube LinkedIn