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Tail Risk

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Tail Risk Strategy

Article Main Body

Strategy Overview

PIMCO constructs asymmetric hedge overlay portfolios that help clients mitigate portfolio downside risk. Hedge portfolios can be constructed for traditional and non-traditional portfolios and for portfolios that contain assets, liabilities or combinations of the two.

How To Invest

  • Separate Accounts
Article Disclaimer

Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. Tail risk hedging may involve entering into financial derivatives that are expected to increase in value during the occurrence of tail events. Investing in a tail event instrument could lose all or a portion of its value even in a period of severe market stress. A tail event is unpredictable; therefore, investments in instruments tied to the occurrence of a tail event are speculative. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested.  There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market.

This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product.

 

How To Invest

  • Separate Accounts

Related Strategies

IN ASSET ALLOCATION:
  • All Asset Strategy
  • Diversified Real Asset Strategy
  • Emerging Multi-Asset Strategy
  • Global Multi-Asset Strategy
  • Real RetirementTM Target Date ​​​​
  • Tail Risk Strategy
More Strategies
   View All Strategies

 

No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Pacific Investment Management Company LLC, 840 Newport Center Drive, Newport Beach, CA 92660, 800-387-4626. ©2013, PIMCO.

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