Specialist strategies: volatility trading and reinsurance — Flashcards

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Specialist strategies: volatility trading and reinsurance — Flashcards

9 flashcards

Read Study Notes Questions

What are specialist HF strategies?

HF strategies with high sortino ratios:

In a reinsurance/life settlement HF strategy, what qualities of insurance policies are sought out?

What is a volatility trading HF strategy?

Describe a carry trade's return distribution

What is a managed futures HF strategy?

HF strategies with smallest max drawdowns:

What are multi-manager HF strategies?

If the deal is expected to go through in a merger arbitage...

Specialist strategies: volatility trading and reinsurance CFA Flashcards - Medical Study Cards

Master Specialist strategies: volatility trading and reinsurance with Oncourse flashcards. These spaced repetition flashcards are designed for medical students preparing for NEET PG, USMLE Step 1, USMLE Step 2, MBBS exams, and other medical licensing examinations.

Specialist strategies: volatility trading and reinsurance Flashcard Deck - 9 Cards

Flashcard 1: What are specialist HF strategies?

Answer: - risks of these strategies arise due to exposure to specific sectors or unsual securities - subtypes: volatility strategies an reinsurance strategies

Flashcard 2: HF strategies with high sortino ratios:

Answer: - equity market neutral - systematic futures - long/short equity - event driven

Flashcard 3: In a reinsurance/life settlement HF strategy, what qualities of insurance policies are sought out?

Answer: - purchase price of policy is low - ongoing premium payments are low - insured person is likely to die relatively soon - low surrender value

Flashcard 4: What is a volatility trading HF strategy?

Answer: - buy underpriced volatility and sell overpriced volatility - act as the counterparty to market participants that consistently seek long volatility - receives an insurance-like premium as compensation for taking on this risk

Flashcard 5: Describe a carry trade's return distribution

Answer: negatively skewed, fat tails

Flashcard 6: What is a managed futures HF strategy?

Answer: - take long/short positions in futures, forwards, options on futures, swaps & currencies/commodities - enter derivative contracts, not buying asset - fund uses 1/8 of its capital as collateral on futures contracts, the rest is invested in a highly liquid security that can also servce as collateral for the futures clearing house - highly liquid (futures trade globally and continously) - subject to "crowding": many pursue same trades - size of positions based on correlation and volatility - Little correlation with traditional equity & fixed-income assets - exit methodologies based on price targets, momentum reversal, time, trailing stop-loss

Flashcard 7: HF strategies with smallest max drawdowns:

Answer: - global macro - systematic futures - merger arbitrage - equity market neutral

Flashcard 8: What are multi-manager HF strategies?

Answer: - use other HF strategies as building blocks, combining different strategies together and rebalancing exposures over time - subtypes: multi-strategy funds and FofFs

Flashcard 9: If the deal is expected to go through in a merger arbitage...

Answer: long target company and short acquisition company

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Specialist strategies: volatility trading and reinsurance Flashcards for CFA

Study 9 flashcards on Specialist strategies: volatility trading and reinsurance for CFA Alternative Investments (Level II). These active recall cards cover the key concepts, clinical associations, and high-yield facts from this chapter of Hedge Fund Strategies. Each card is designed to test your understanding rather than just recognition, building stronger and more durable memories for exam day.

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Yes, all flashcards on this page are completely free. You can study all 9 cards at no cost. For spaced repetition scheduling, download the Oncourse app.

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There are 9 flashcards for Specialist strategies: volatility trading and reinsurance, covering the key concepts, clinical correlations, and high-yield facts from this chapter of Hedge Fund Strategies.

How should I use these flashcards for CFA?

Read through each prompt and try to answer before revealing the back of the card. This active recall approach builds stronger memories than passive reading. Combine flashcards with the study notes and MCQ practice for the best results.

Are there more flashcards for Hedge Fund Strategies?

Yes. This page covers one chapter of Hedge Fund Strategies. Visit the topic page to see all chapters and their flashcards under Alternative Investments (Level II).

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