Risky Business: How to Maximize Returns
Mike Green, portfolio manager & chief strategist at Simplify, welcomes Giuseppe Paleologo, head of risk management at Hudson River Trading, to share his thoughts on hedge fund returns, risk management methods, and the impact of passive investing on portfolio managers. Drawing on his experience in operations research and his time at Citadel, Paleologo explains modern risk management strategies. He also argues that the current trend towards passive investing and low rates has made active investing difficult for portfolio managers and hedge funds. Finally, the pair analyzes the pros and cons of long and short portfolios and addresses the implementation of models that carry less risk. Filmed on June 21, 2021.