What We Do
Understanding the nuances of various risks, costs, and liabilities is critical to being able to achieve the maximum benefits of an investment, while avoiding unintended or uncompensated risks and costs that often have a counter effect to overall objectives. Whether it's in the form of unintended currency exposures, rapid market decline or risks arising from economic factors, such as inflationary pressures, First Quadrant seeks to understand every aspect in order to minimize its impact. First Quadrant’s mitigating capabilities utilize various tools that are designed to guard against unwanted risks, costs and liabilities in the investor’s portfolio while simultaneously targeting value-added capital appreciation.
Currency management

Investors with international holdings must make decisions not only about their equity and fixed income exposures, but also about the currency exposures derived from those holdings. Either ignoring those exposures completely, fully hedging back to your base currency to avoid any currency risk, or even selecting a hedge ratio to minimize portfolio risk may not necessarily be optimal. With over 20 years of experience managing currencies, First Quadrant seeks to deliver consistent risk-adjusted return for our clients. Using a dynamic approach to address the risk and return patterns of currencies, First Quadrant seeks to manage currency exposure in a disciplined way that can also enhance the profitability of your portfolio. We tailor various currency overlay and hedging solutions to meet the specific needs of our clients.

Inflation protection

Two investors who both say they are concerned about inflation may actually be concerned about quite different issues. Inflation has a number of different effects, and it is important for each investor to identify the specific reason(s) for their concern. At First Quadrant, we have studied the various inflation concerns that investors may have, and have developed several metrics to evaluate the potential of different assets to address these different concerns. What we have found is that there is no single asset that can address both the short/medium-term and long-term concerns simultaneously. Accordingly, we employ such tools as balanced-risk commodities, enhanced commodities and TIPS to deliver real return solutions.

Past performance is no guarantee of future results. Potential for profits is accompanied by possibility of loss. Commodities trading involves substantial risk of loss.

Contact us to hear how we can help you manage and minimize your risks.