Our range of solutions includes tailored mandates in the areas of overlay (hedge, beta, alpha), yield enhanced solutions, liquid bond and equity alternatives, convertible bonds, and various mutual funds.
We also act as a strategic partner of investors, helping them with comprehensive derivative overlay strategies. Thanks to the targeted exploitation of asymmetrical securities parameters, we generate steady performance with little risk.
- Cash Alternatives
- Bond Alternatives
- High Yield Alternatives
- Hedge Fund Alternatives
Our transparent and highly liquid alternative investments prove their worth in different market phases, generating negatively correlated and absolutely positive returns. Important attributes are capital preservation, hedging against price losses and diversification. We have taken an active approach for decades, selectively exploiting asymmetric security parameters to meet our clients’ short-term risk and return objectives. In this context, the individual risk budget can be designed in such a way that the liquid alternative can be structured as both a cash and a hedge fund solution.
For investors who take a more conservative approach to risk, there is hardly any alternative to a significantly higher equity exposure in view of the low level of interest rates. Our bond currency volatility (COP) strategy generates additional and uncorrelated returns due to a dynamic option strategy on Global 10 currencies. A EUR denominated portfolio of investment grade bonds with short maturities serves as the basis.
In recent years, our option strategies based on single positions or equity indices have proven to be particularly robust. The individually structured strategy systematically exploits the time value effect (theta) by exploiting the difference between realized and implied volatility on the financial market. In this way, positive additional earnings can be achieved in the long term. The equity overlay offers an interesting combination to traditional classical investments.
- Global Convertibles
With convertible bonds, you acquire the upside potential of equities combined with the defensive nature of bonds, which limits the potential for loss. Since EMCORE was founded in 1998, we have focused on the niche segment of convertible bonds. We are convinced that the risk-return-profile can be optimized as a strategic or tactical addition with this asymmetric solution.
Our global convertibles funds offer you significant advantages through broad diversification and exclusive positioning in the investment grade (higher capital protection) and hybrid sectors (stable bond floor).
- Cashflow Strategies
- Hedging Strategies
- Yield Enhanced Strategies
Our derivative overlay management is designed to the individual needs of each client. As a specific niche provider, we focus explicitly on our area of expertise. We pursue the effective goal of reducing portfolio risk and optimizing returns.
Based on a calculated risk budget, we develop attractive additional returns for our clients in order to be compensated accordingly for the market- and security-specific risk taken. Our highly liquid overlay strategies provide a positive and additional return to an existing core holding or can be implemented as an add-on to a broadly diversified and long-term oriented portfolio.
Beta is a measure of how much an asset return depends on the overall market. Our customized and dynamic risk management solutions help to significantly reduce the risk of an asset and contribute to lower volatility and more stable performance in the portfolio.
Due to the historically very low level of interest rates, investors are looking for new sources of yield. We have an attractive product offering for our customers to meet the demand for higher yield bond portfolios.
FX Risk Transfer
- FX Cashflow Planning
- FX Hedges
- EBIT Planning
We are deeply involved in measures to reduce costs and optimize foreign currency transactions and their associated currency risk management for globally invested portfolios and internationally active companies. A systematic FX hedging mechanism can be used to counter market volatility and protect against adverse price movements.