looking beyond traditional asset classes for return and diversification.

Alternative Risk Premia are sources of return that can be captured systematically through various long/short investment strategies, not stemming from traditional asset classes. They can offer uncorrelated sources of return with the potential to enhance risk adjusted returns in an investor’s portfolio.

At Lombard Odier Investment Managers, we categorise Alternative Risk Premia into two distinct, complementary sources of return: Income Oriented premia and Risk Mitigation premia. These exhibit complementary behaviour depending on market conditions. By combining them, we believe we can target smoother returns that are less exposed to drawdowns and to the specific risks linked to individual strategies.

We employ a systematic investment approach to achieve this aim, whereby portfolio allocation is driven by a proprietary risk-based process. The strategy offers investors daily liquidity and can be tailored according to an investor’s risk and return objectives. 
Alternative Risk Premia are sources of return not stemming from traditional asset classes. These can be systematically captured and offer the potential to enhance returns.

During recent years, we have engaged in extensive research in order to make our LOIM ARP strategy more robust and less sensitive to market conditions.

click here to access our research.