Client Advisory

Generative AI’s capacity to produce new realistic content has drawn the world’s attention, but what is its place in investing? In this talk, we consider both the promise and limitations of generative AI and other deep learning technologies. We also highlight factors that will drive success or failure in investing applications.

Although geopolitical risk is omnipresent in investing, there is little systematic research on the relationship between geopolitics and markets. In this talk, we explore how markets react to shocks and process uncertainty. We also demonstrate a novel methodology to help investors measure and manage macro event-related risks that overcomes shortcomings of conventional tools.

Crashes are regular features of markets, and they can have a dramatic impact on long-term total returns. Even so, investors do not consistently factor crash risk into the design of their portfolios. In this session, we’ll compare approaches to preparing for black swans, consider where crash risk exposure may be going unnoticed in portfolios, and examine how premium harvesters might underwrite such risk transparently and efficiently.

Although diversification is a cornerstone of portfolio theory, investors often abandon it or feel abandoned by it. In good times, they chase performance, and in bad times they find that many “uncorrelated return streams” fail to deliver promised protection. In this talk, we examine why many conventional modes of diversification improve portfolio optics more than economics, and we highlight key elements of a more durable approach.