Taking Stock of Hedged Equity: An Interview with Alex Moore, Head of GT Public Markets Team
Hedged equity is a multifaceted strategy. It serves as a way to amplify equity exposure with less risk than pure long equity strategies. Hedged equity pairs well with multi-strategy exposure in a defensive basket for investors with at least an intermediate time horizon — returns from the two strategies tend to ebb and flow, not necessarily in sync with each other. Finally, hedged equity has highly valued antifragile characteristics, meaning that the strategy can actually get stronger, especially during prolonged market drawdowns.