Bréhat: a portfolio hedging solution at a very moderate cost (tail risk)
Launched in 2016, Brehat is a long-short volatility mutual fund.
The result of research begun in 2005, the fund was designed as an alternative to long-only volatility1 and short-only volatility2 strategies in order to combine the strengths of each strategy, while trying to mitigate their drawbacks.
The objective of the fund is to perform during equity market crashes while taking advantage of bullish phases.
To gain exposure to volatility, Brehat only invests in VIX futures of different maturities (VIX indicator measures the expected future volatility of the S&P 500 index).
Investing in futures is the most liquid and least sensitive to counterparty risk.
1 Long only volatility strategies protect against shocks. They are therefore an insurance policy. However, they are structurally bearish and their cost is prohibitive.
2 Short only volatility strategies pay off in calm markets. On the other hand, they are very vulnerable during market crashes.
Past performance is not a reliable indicator of future performance. Funds present a risk of capital loss. Funds present a risk of capital loss. They may not be suitable for all investors. We recommend that you read about the risks involved in the “risks” section of the website: here
A different approach to volatility
In addition to its innovative management fueled by the latest scientific advances and AI technologies, the Brehat strategy is unique in its very approach to measuring market stress, popularly established by the VIX Volatility Index (a measure of equity market stress).
Risk at the heart of the analysis model
Inspired by behavioral finance, the model analyzes the market’s state of stress to adapt its exposure to volatility risk.
Artificial intelligence drives exposure in an optimized way. Volatility positions evolve continuously thanks to our adaptive models.
Past performance is not a reliable indicator of future performance. Funds present a risk of capital loss. Funds present a risk of capital loss. They may not be suitable for all investors. We recommend that you read about the risks involved in the “risks” section of the website: here
