Risk Management

Risk management is a core tenet of our investment philosophy

Gateway takes a comprehensive approach to investment risk management.

Index-based options are our investment risk management instrument, embodying our overall risk management philosophy. The hedging overlay relationship between index options and diversified equity portfolios removes an element of uncertainty that is often associated with risk management approaches based on asset class diversification or long-only/long-short individual security selection. This relationship gives our risk profile analytics a level of reliability that facilitates real-time decision making. It also allows for stress testing the entire portfolio in different market and volatility environments and enables us to measure the effects of changes in the portfolio prior to implementation.

To read about the case for an index approach to low-volatility equity, please click here - The Journal of Investing: Option-Writing Strategies in a Low-Volatility Framework