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Products June 8, 2011
Windham Capital Launches New Approach to Risk
June 8, 2011 (PLANSPONSOR.com) - Independent investment firm Windham Capital has launched risk measures that it says “mark a new approach to asset management through changing market conditions by managing risk as a cycle, not an event.”
Reported by Rebecca Moore
According to a press release, the Windham strategy is not based on price volatility alone – as are most other models – but instead measures the interactions among asset classes to gauge opportunities in all market environments.
Windham’s approach addresses the fact that risk has hidden linkages across the broader economy, making the global markets even more fragile. Expectations for sustained slow economic growth and continued market volatility signal a time to proactively manage risk rather than react to it.
Through its Windham Investment Risk Cycle, Windham uses proprietary measures of risk, including turbulence, which shows the interactions among a wider set of assets and is designed to anticipate broader market selloffs, and systemic risk, which reflects how fragile a market might be based on whether it is “tightly coupled” (unrelated sectors move in unison) or “loosely linked” (little price correlation).
For more information, visit http://www.windhamcapital.com.