Cross-Asset Thematic Strategy, Edelscourt

Albert Maass

Cross-Asset Thematic Strategy

Edelscourt

Established in 2014, Edelscourt combines cutting-edge technology with deep industry knowledge. We specialise in risk management solutions for a diverse range of clients, from financial institutions to family offices.

Cross Asset Strategy

<ul>
<li>Fed policy choices could create two distinct market paths: a growth-driven rally if rates fall to 2-2.5% or a defensive rotation if rates stay near 5%.</li>
<li>Understanding equity as a call option explains why changing interest rates dramatically impacts sector performance and overall market returns.</li>
<li>Practical strategies exist for navigating both scenarios, focusing on portfolio positioning that can adapt to either Fed outcome.</li>
</ul>


Fed policy choices could create two distinct market paths: a growth-driven rally if rates fall to 2-2.5% or a defensive rotation if rates stay near 5%.
Understanding equity as a call option explains why changing interest rates dramatically impacts sector performance and overall market returns.
Practical strategies exist for navigating both scenarios, focusing on portfolio positioning that can adapt to either Fed outcome.


The Fed's Next Move: How Interest Rates Will Make or Break Your Portfolio

<ul>
<li>Private credit's rapid growth necessitates enhanced risk management due to increased capital inflows and limited high-quality investment opportunities.</li>
<li>Focus on credit risk, liquidity risk, and interest rate risk, ensuring thorough due diligence and stress testing.</li>
<li>Employ advanced risk models, foster strong risk culture, leverage technology, and stay updated on regulatory changes for sustainable market positioning.</li>
</ul>


Private credit's rapid growth necessitates enhanced risk management due to increased capital inflows and limited high-quality investment opportunities.
Focus on credit risk, liquidity risk, and interest rate risk, ensuring thorough due diligence and stress testing.
Employ advanced risk models, foster strong risk culture, leverage technology, and stay updated on regulatory changes for sustainable market positioning.


Strengthening Risk Management in the Booming Private Credit Market

<ul>
<li>Litigation funding offers third-party financing for lawsuits in exchange for a share of the settlement or judgment.</li>
<li>It has emerged as an attractive asset class due to high returns and diversification benefits.</li>
<li>The market is driven by institutional involvement, technological advancements, and the rise of ESG litigation.</li>
</ul>


Litigation funding offers third-party financing for lawsuits in exchange for a share of the settlement or judgment.
It has emerged as an attractive asset class due to high returns and diversification benefits.
The market is driven by institutional involvement, technological advancements, and the rise of ESG litigation.


<ul>
<li>Tensions between Israel and Iran have escalated, potentially leading to a broader conflict involving major global powers, which could significantly impact global financial markets.</li>
<li>Immediate market reactions could include a drop in global stock markets, a surge in oil prices, and increased demand for safe-haven assets like gold and the US dollar.</li>
<li>Multi-Asset portfolio managers need to employ strategies such as reducing risky asset exposure, increasing investments in defensive sectors, and diversifying geographically to mitigate the conflict's impact on investments.</li>
</ul>


Tensions between Israel and Iran have escalated, potentially leading to a broader conflict involving major global powers, which could significantly impact global financial markets.
Immediate market reactions could include a drop in global stock markets, a surge in oil prices, and increased demand for safe-haven assets like gold and the US dollar.
Multi-Asset portfolio managers need to employ strategies such as reducing risky asset exposure, increasing investments in defensive sectors, and diversifying geographically to mitigate the conflict's impact on investments.


Hedging Risk Amidst the Escalating Israel-Iran Conflict

<ul>
<li>Advanced modelling of illiquid assets offers real-time valuation estimates, enhancing decision-making in multi-asset portfolios with elements like Private Equity LP interests.</li>
<li>These techniques go beyond traditional analyses, correlating assets with macroeconomic factors for a comprehensive view of portfolio performance.</li>
<li>Implementation includes adjusting the latest Net Asset Value for market dynamics, with back-testing ensuring continual accuracy and relevance.</li>
</ul>


Advanced modelling of illiquid assets offers real-time valuation estimates, enhancing decision-making in multi-asset portfolios with elements like Private Equity LP interests.
These techniques go beyond traditional analyses, correlating assets with macroeconomic factors for a comprehensive view of portfolio performance.
Implementation includes adjusting the latest Net Asset Value for market dynamics, with back-testing ensuring continual accuracy and relevance.


Navigating the Fog: Modelling Illiquid Assets in Real-Time