Many low volatility strategies have been unsuccessful at seeking to protect investors from drawdowns. This can be traced to two major design flaws. Northern Trust Asset Management's Head of Quantitative Strategies, Michael Hunstad, explains.
Northern Trust Asset Management comprises Northern Trust Investments Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan K.K., NT Global Advisors Inc., 50 South Capital Advisors, LLC and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.
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