The paper shows that drawdowns that lasted multiple years tend to be more impactful to cumulative returns than ones that last less than a year, suggesting it’s the longer-term drawdowns that investors should focus on protecting themselves against
The prevalence of low long-term interest rates, combined with high equity valuations, suggests that equity returns going forward will be significantly lower than historical averages
Allan Brik, CEO of risk automation technology provider Everysk, discusses what hedge fund managers need to be conscious of with regards to their risk management processes