The Advances in Asset and Factor Allocation Seminar: Factor Investing,...
10 Fleet Place, Ludgate,...
Risk Management as the Key Source of Added Value in Investment Management
Investment management in the new era can be defined as the art and science of efficiently spending institutional or individual investors’ dollar and risk budgets to help them achieve their meaningful goal-driven objectives (for individuals) or liability-driven objectives (for institutions), subject to a number of regulatory constraints or otherwise. Whatever the context, meaningful investment solutions are in fact invariably based on three fundamental sources of added value, each reflecting one particular form of risk management technique : (1) the use of an efficient risky performance-seeking portfolio (PSP); (2) the use of an efficient safe liability-hedging or goal-hedging portfolio; and (3) the use of an efficient allocation strategy for efficient risky and safe building block portfolios.
Diversification
The risky portfolio should be efficient at harvesting risk premia across and within asset classes: It’s all about diversification!
Hedging
The safe portfolio should be efficient at matching risk factor exposures on the asset and liability sides: It’s all about hedging!
Insurance
The allocation to the efficient risky and safe portfolios should secure investors’ essential goals while generating a high probability of achieving their aspirational goals: It’s all about insurance!
Academic Roots
EDHEC Bond Risk Premium
Bayesian Nets for Stress Testing
EDHEC Risk Expertise
ESG Factors and Sustainable Investment Solutionst
"Flexicure" Retirement Solutions - A part of the Answer to the Pension Crisis?
Practitioner Reach
Ostrum Bond Portfolio Optimization
Results of the 12th EDHEC European ETF Smart Beta Survey
News
13-01-2020
Lionel Martellini invited to join the Institutional Investors’ Committee of Paris...
Lionel Martellini, Director of the EDHEC-Risk Institute has been invited by Valérie Baudson, Chairman of the Institutional Investors’ Committee to join the Institutional Investors’ Committee of Paris EUROPLACE. Since 12 December 2019, Lionel serves as the only representative from the academic world.
The Paris financial marketplace plays a key role in financing the economy. The association aims in...
03-01-2020
A Year in Research: What were EDHEC-...
As we enter a new decade, EDHEC-Risk Institute takes a look back at the most read articles of 2019, covering a diverse range of topics that are at the heart of its expertise, including : sustainable...
02-01-2020
EDHEC-Risk Institute and FirstRand...
EDHEC-Risk Institute and FirstRand Limited are partnering for the first time to launch a three-year research chair entitled “Designing and Implementing Welfare-Improving Investment Solutions for...
Events
23 Jun
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Citations in worldwide trade publications
520
Papers published
2 300
Participants trained
150 000
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About EDHEC
Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the world’s top 15 business schools. Fully international and directly connected to the business world, EDHEC commands a strong reputation for research excellence and the ability to train entrepreneurs and managers capable of breaking new ground. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching is inspired by its research work and a focus on “learning by doing”, all with the aim of equipping people with the skills to succeed in business.
