We're often asked about how to build an unconstrained sleeve in a portfolio.
Our view is that your mileage will largely vary by where you are trying to go. With that in mind, we focus on three objectives:
- Sleeves that seek to hedge equity losses.
- Sleeves that seek significant equity upside capture while reducing downside.
- Sleeves that seek an absolute return profile.
We explore how these sleeves can be built using common strategies such as tactical equity, minimum volatility equity, managed futures, risk parity, global contrarian, alternative income, and traditional U.S. Treasuries.
You can find the full presentation below.