<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In emerging markets, the processes in portfolio management should be adapted according to the typical constraints (market liquidity aspect and other market imperfections)that limits the use of alternative instruments / strategies and diversification capabilities. The aim is to develop a new way to understand and implement innovative solutions in real portfolio management in the case of Romanian capital market. The innovation is based on a scalable hedge-fund (HF) structure that capture different alternative instruments. This HF architecture represents a versatile dynamic AIF, equipped with capabilities to integrate the synergies between diversification based on alternative instruments but also the diversification based on alternative strategies and it integrates a core thematic sub-portfolio and 2-4 satellite rotating sub-portfolios capable to compensate the impossibility to use short sales and leverage strategies.</p>
</abstract>

In emerging markets, the processes in portfolio management should be adapted according to the typical constraints (market liquidity aspect and other market imperfections)that limits the use of alternative instruments / strategies and diversification capabilities. The aim is to develop a new way to understand and implement innovative solutions in real portfolio management in the case of Romanian capital market. The innovation is based on a scalable hedge-fund (HF) structure that capture different alternative instruments. This HF architecture represents a versatile dynamic AIF, equipped with capabilities to integrate the synergies between diversification based on alternative instruments but also the diversification based on alternative strategies and it integrates a core thematic sub-portfolio and 2-4 satellite rotating sub-portfolios capable to compensate the impossibility to use short sales and leverage strategies.

Aspects Regarding a New Methodology for Active Portfolio Management of Hedge Funds Alternative in Emerging Markets-the Case of Romanian Capital Market in the Actual Context of Post-Crisis Recovery

International conference KNOWLEDGE-BASED ORGANIZATION

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

In emerging markets, the processes in portfolio management should be adapted according to the typical constraints (market liquidity aspect and other market...

Aspects Regarding a New Methodology for Active Portfolio Management of Hedge Funds Alternative in Emerging Markets-the Case of Romanian Capital Market in the Actual Context of Post-Crisis Recovery

Published Online: Jul 12, 2021

Page range: 94 - 99

DOI: https://doi.org/10.2478/kbo-2021-0054

Keywords
active portfolio management, alternative investment funds (AIFs), hedge fund (HF) architecture, sub-portfolio selection, post-crisis recovery

© 2021 Eugen-Silviu Vrăjitoru et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Aspects Regarding a New Methodology for Active Portfolio Management of Hedge Funds Alternative in Emerging Markets-the Case of Romanian Capital Market in the Actual Context of Post-Crisis Recovery

Published Online: Jul 12, 2021

Page range: 94 - 99

DOI: https://doi.org/10.2478/kbo-2021-0054

Keywordsactive portfolio management, alternative investment funds (AIFs), hedge fund (HF) architecture, sub-portfolio selection, post-crisis recovery

© 2021 Eugen-Silviu Vrăjitoru et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
active portfolio management, alternative investment funds (AIFs), hedge fund (HF) architecture, sub-portfolio selection, post-crisis recovery