Liquid Alternative Strategies Summit
Identifying investment opportunities across a growing spectrum of strategies
October 5, 2016 | Computer History Museum | Mountain View, CA
CFP & CIMA CE credits will be available
We reimburse your local transportation expenses*
8:00 – 8:50 – Registration & Breakfast
8:50 – 9:00 – Chairperson’s Welcome & Introduction
W. Ben Hunt, Ph.D., Chief Risk Officer
9:00 – 9:50 - The World of Global Macro
Globalization and an increasingly hyper-connected world compel all investors to understand the dynamics of “macro” forces in the markets. In this session, we will highlight the process of navigating the risks and opportunities that span not only geography but asset classes. The growing divergence of economies, markets, and policies worldwide has changed risks for investors broadly, but may also be providing new opportunities for global macro managers. The speakers will highlight how they identify long and short opportunities and hedges across equity, fixed income, commodity, and currency markets.
9:50 – 10:40 - Will a Value Renaissance Transform Long/Short Equity?
In 2016, equity market leadership appears to be shifting from growth to value, a potentially fundamental change in the sources of risk and return for long/short equity investors. What forces may be driving this shift and what will be the impact on long/short equity funds? Has a renewed appreciation for risk led equity investors “back to basics” – favoring stocks of solid businesses at reasonable prices while eschewing companies with stretched valuations and uncertain futures? We will explore changing equity market dynamics and the potential effect on hedged equity investing as well as what may be the most compelling return opportunities and risks on the long and short sides as equity markets evolve.
10:40 – 11:10 - Morning Networking Break
ALTERNATIVE FIXED INCOME
11:10 – 12:00 - Facing Multiple Challenges in Fixed Income: Rates, Spreads, and Liquidity
Fixed income investors face multiple challenges. In the US, the Fed has begun to raise rates (at an uncertain pace). Overseas, key central banks continue a historic experiment with negative interest rate policies. Energy and commodity prices have triggered volatility, wider spreads, and default jitters in credit markets. Even bond market liquidity has become a concern. Can non-traditional and unconstrained bond funds help navigate the multiple challenges of today’s fixed income markets? This session will review the spectrum of alternative fixed income strategies, encompassing long/short approaches to credit, rates, and sovereign bonds, as investors seek new sources of yield, total return, or a “smoother ride” from their fixed income allocations.
12:00 – 12:50 – The Resurgence of Managed Futures
Recent periods of positive returns—with reduced correlation to traditional asset classes—have driven a resurgence of investor interest in managed futures. This recovery followed a period when managed futures strategies had been under pressure, as public policy intervention punctuated trends and dynamics within global markets. New trends in currency and financial markets, as well as divergent central banks and world economies, have provided fresh sources of profits—and challenges—for both systematic and discretionary managers. This session will highlight the dynamics driving managed futures, the variety of approaches, how the sector may complement traditional assets, and the varied opportunities and risks that remain.
KEYNOTE LUNCHEON ADDRESS
12:50 – 1:40 - Epsilon Theory: Viewing Capital Markets Through the Lenses of Game Theory and History
The standard model of modern portfolio theory isn’t wrong, it’s just incomplete. By combining his practical experience as a portfolio manager, risk manager, and entrepreneur, W. Ben Hunt, Ph.D., examines markets through the lenses of game theory, history and politics to provide a unique perspective on investment risk and reward. Using examples from pop culture, TV, movies and music, Epsilon Theory illustrates how markets are shaped and influenced by politicians and bankers, as well as why modern economics and market strategists should be taken with a grain of salt.
W. Ben Hunt, Ph.D.
Author of “Epsilon Theory”
1:40 – 2:00 - Dessert Networking Break
LIQUID VS. ILLIQUID ALTERNATIVES
2:00 – 2:50 - Investing Across the Liquidity Spectrum
Private equity and debt were among the first alternative investment strategies. New structures now seek to enhance the accessibility or liquidity of these strategies. The session will review how this evolution represents new avenues for investors to diversify their alternatives exposure across the liquidity spectrum, and how risks differ with the degree of liquidity or illiquidity of an investment.
2:50 – 3:40 - Arbitrage, Events, and Volatility as Sources of Returns
Alternative investors have long sought strategies with the potential to provide consistent returns with reduced dependence on market direction. Merger arbitrage and event-driven funds were among the first alternative mutual funds seeking such a return profile. Recently, approaches seeking to exploit volatility have been among the new additions to this unique group of funds. Our presenting managers will highlight how arbitrage, event-driven, and volatility investing may be utilized to seek return streams with reduced correlation to traditional assets. They will delve into the idiosyncrasies and risks of their strategies, appropriate expectations for investors, and how their strategies may potentially complement and diversify a broader portfolio.
3:40 – 4:10 - Morning Networking Break
4:10 – 4:40 - Multialternative Funds: Seeking a Comprehensive Solution to Liquid Alternatives
Multialternative funds have been one of the fastest growing segments of the liquid alternatives universe. They seek to provide an “all-in-one” or core solution for a liquid alternatives allocation. There are varied approaches within this sector, from single manager to multi-manager, and from funds-of-funds to hedge fund replicators and more. In addition to a wide variety of structures, multialternative funds may have differing risk/return profiles and underlying strategies. We will guide attendees across the current landscape of multialternative funds, and how advisors and investors may approach the process of analyzing, selecting, and implementing multialternative funds.
PUTTING LIQUID ALTERNATIVES TO WORK
4:40 – 5:30 - Asset Allocation & Portfolio Construction with Liquid Alternatives
The conference will conclude with a survey of practical portfolio construction approaches utilizing liquid alternatives. What allocations to liquid alternatives may potentially increase diversification, reduce volatility, or enhance returns for a multi-asset portfolio? Should allocations to liquid alternatives be funded from stocks, bonds, or both? What kind of liquid alternative allocations may be most appropriate for different types of clients?
5:30 – 6:30 – Cocktail Reception
JV Events Group reserves the right to alter the agenda without notice, including substitution or cancellation of speakers and/or topics.