High Yield Hedge Operations

Economics assert that a fundamental relationship in the research field of finance is the relationship between expected return and the expected level of associated risk. The nature of the relationship is determined that as the level of expected risk increases, the level of expected return also increases.

However, structured approaches to design a risk-profit relationship to target are rare to find. Moreover, conventional performance measures, such as the widespread Sharpe Ratio, are not suited to accurately describe the risk for high-risk investments, and due to their characteristics, high-risk investments are not well understood.

High-risk investments are not meant to lose. With an in-depth insight into financial engineering, for selected industrial clients and HNWIs, our quant engineers design high-yield/high-risk investment programs, which statistically prove their yields being a multiple of their risks. In high-yield programs, VERMONT HARDING’s Cash Allocation Optimizer CALOC guarantees a loss boundary and similarly optimizes the probability to achieve the defined profit goal.

The Benefits of High Yield Hedge Operations

• Balance a portfolio that might be over-diversified.
• Reduce risk due to a systematic program design.