Tail Risk Hedging
Tail Risk Hedging is a comprehensive and rigorous book laying out a systematic approach to protecting portfolios from, and potentially benefiting from, rare yet severe market outcomes. Using empirical data and charts, it explains the consequences of diversification failure in tail events and how to manage portfolios when this happens. This book provides an easy-to-use, yet rigorous framework for protecting investment portfolios against tail risk and using tail hedging to play offense. Volatility and tail risks are here to stay, and so should your clients' wealth when you use Tail Risk Hedging for managing portfolios.
Praise For Tail Risk Hedging
"Managing, mitigating, and even exploiting the risk of bad times are the most important concerns in investments. Bhansali puts tail risk hedging and tail risk management under a microscope--pricing, implementation, and showing how we can fine-tune our risk exposures, which are all crucial ways in how we can better weather our bad times." --
— Andrew Ang, Ann F. Kaplan Professor of Business at Columbia University
"This book is critical and accessible reading for fiduciaries, financial consultants and investors interested in both theoretical foundations and practical considerations for how to frame hedging downside risk in portfolios. It is a tremendous resource for anyone involved in asset allocation today."
— Christopher C. Geczy, Ph.D., Academic Director, Wharton Wealth Management Initiative and Adj. Associate Professor of Finance, The Wharton School
"Bhansali's book demonstrates how tail risk hedging can work, be concretely implemented, and lead to higher returns so that it is possible to have your cake and eat it too! A must read for the savvy investor."
— Didier Sornette, Professor on the Chair of Entrepreneurial Risks, ETH Zurich