Hedge fund manager-of-manager and consultant PAAMCO has launched PAAMCO Alternative Beta to offer a portfolio of alternative risk premia strategies for investors.
The alternative beta platform will be run by Lisa Fridman and Philippe Jorion, as co-heads. Fridman will continue as global head of research at PAAMCO and Jorion will remain as head of risk management for the firm. The use of alternative beta is seen as providing diversification to traditional markets at a lower cost than traditional hedge fund investments.
Commenting on the trend towards alternative beta among investors, Jorion said: “Passive management has transformed the asset management industry with index funds. The next wave of innovation was ‘smart beta’ funds. Now, ‘alt beta’ funds are primed to be the next step. We believe alt beta products can be harnessed to add value to investor portfolios through proper component selection and structuring.”