Investment banks offer access to both academic alternative risk premia (ARPs) and trading ARPs. Both include several distinct strategies, yet much heterogeneity exists within the same ARP strategies. This is in part, due to the many implementation choices available. Investors need to understand the risk and return characteristics of investable ARP products and how they may be similar or dissimilar to those factors that are well documented in the academic literature. In “An introduction to Alternative Risk Premia” Guillaume Monarcha surveys a wide range of ARP strategies available to investors and investigates their properties. Read the full summary below.
Viewpoint PDF File
caiaviewpoint_april2019_arp2.pdf