When it comes to alternative asset investment, Gareth Henry is one of the knowledgeable pioneers. Henry has a vast experience on the opportunities and operations that are involved in private credit and equity as a form of alternative investment. In the medium article, Gareth Henry gets deeper in some of the pillars of alternative investment, like program trading, CTAs and risk parity.
For a long time, investors have been looking for ways in which they can hasten the speed at which they get their investment returns while they triple the returns. These endeavors have led to an increase in the number of ways that can be used to achieve the desired results. These invested operated outside the fringes of the market after they abandoned the fundamental analysis of the stock market. Though their methods are very legal, these methods can indirectly affect the prices of stocks with sudden and dramatic prize rise or fall through computer programs. This method of trade is referred to as program trading. See more at bizjournals.com for more business news.
Program trading is very similar to what is called pump-and-dump in security and exchange commission. One of the challenges that were faced at the beginning of the program was lack of techniques or methods to measure their impact. The only way that assured investors of their productivity was the fact that these programs yielded rapid and large profits for the experts on the programs and big investors.
On risk parity, Gareth Henry points out that this type of investment allocation technique is based on the volatility of the asset rather than the price. As the volatility of the asset increases so does it’s a weight on the portfolio. Since the investments holding period can run into years, the investments can be adjusted from time to time. Adjustments are often made at the end of each month, after calculating the current volatility and readjusting it on the portfolio.
Gareth Henry has worked with a number of alternative investment firms across the United States and Europe. He is the current Managing Director of the fortress investment group, where he oversees the marketing operations of the company’s Middle East, Europe and US branches.