The concept of portable alpha is over 40 years old. And while it has evolved through various forms over that time, it continues to be a valuable portfolio tool for institutional investors. Arguably, the most popular iteration right now is adding alpha expected from hedge funds on top of synthetic beta exposure.

Recent media coverage about how best to construct and manage portfolios has many wondering whether institutional investors are facing a paradigm shift right now.

The ideal rebalancing range varies by investor and depends on an investor’s risk tolerance and market views, among other factors. In a prolonged equity bull market, wider rebalancing ranges will result in higher returns, but also increase a portfolio’s risk.

Our director of Customized Portfolio Solutions and overlay portfolio management, Brian Causey, shares his key takeaways from 20 years of working on overlay solutions.

The news media, bank executives, the U.S. Federal Reserve (the Fed) chairman and even presidential candidates have made remarks about the recent spike in short-term funding rates. What caused the spike and why is it important?