Low Volatility Investing: Lower the risk, not your expectations
In the aftermath of the 2008 financial crisis, investors face an environment of continued market uncertainty. Low volatility investing seeks to answer the question: “How do I maintain long-term equity exposure within my portfolio whilst reducing risk?”.
Although low volatility as an investment strategy has received increased attention post 2008, the concept is not new. Academic papers by Markowitz (1952) and Black (1972) cited the benefits of using a low volatility investment strategy.
For an introduction to Low Volatility Investing, please download our latest paper here