In summary…
VaR has been likened to a “wobbly speedometer”[1] and “an air bag that works all the time, except when you have a car accident”[2]. Against the backdrop of the Q1 2020 market sell-off and heightened volatility since, we take another look at the usefulness of VaR as a risk management tool across hedge fund strategies. And if the air bag won’t protect us, what other safety measures can safeguard us in a market crash?
Cat bonds: fat tails and thin comfort?
Catastrophe bonds are the most visible component of the broader insurance-linked securities (“ILS”) have started to attract renewed investor attention including from hedge funds. This is understandable as the Swiss Re Cat Bond Index delivered returns of nearly…
Aurum’s quarterly review – Q3 2025
Edge with hedge: Primer for equity long/short funds
