- Advertisement -

Related

BNY Debuts Tail-Risk Overlay Fund

- Advertisement -

BNY Investments Newton, the specialist multi-asset and equity management arm of BNY Mellon, has launched the BNY Adaptive Risk Overlay Fund – a tail-hedging investment vehicle designed to protect portfolios from rare but severe market events. Aimed at institutional and advised intermediary investors in Denmark, Sweden, and other European markets, the fund serves as a portfolio overlay intended to mitigate the impact of extreme market drawdowns.

According to the firm, the strategy is intended to complement investors’ core holdings by mitigating risk exposure during turbulent conditions. The fund will be managed by Portfolio Manager Lars Middleton, who will draw on Newton’s expertise in both tactical and systematic hedging solutions. 

“We are increasingly hearing demand for a liquid tail-hedging solution that helps to better manage portfolio risk during times of increased uncertainty.”

“We are increasingly hearing demand for a liquid tail-hedging solution that helps to better manage portfolio risk during times of increased uncertainty,” says Gerald Rehn, Head of EMEA Distribution at BNY Investments. “With this Fund, clients can access daily liquidity and will benefit from Newton’s longstanding track record of over two decades in managing absolute return funds through volatile market periods.”

The fund launch also builds on Newton’s collaboration with Bank of America through the creation of the Newton Adaptive Risk Overlay Index (NIMARO), unveiled in late 2024. Managed by Newton’s multi-asset team and administered by Bank of America, the index is designed to offer a flexible and transparent tail-risk hedging solution. It combines Newton’s proprietary hedging framework with Bank of America’s quantitative investment strategies and execution infrastructure.

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Beyond 60/40: The Case for Liquid, Systematic Diversification

By Bjarne Graven Larsen: For decades during the great moderation, the 60/40 portfolio was the institutional investor's Swiss army knife. Equities grew wealth; bonds...

Aspect Capital’s Evolving Approach to Chinese Futures

Chinese futures in general add substantial diversification benefits to global futures - and the Chinese commodity futures that dominate certain Aspect Capital strategies also...

Systematic Merger Arbitrage in 2026: Why a Rules-based Approach Matters More Than Ever

By Scott Schefrin, Portfolio Manager at AB Hedge Fund Solutions: After a series of slower years for deal activity, merger arbitrage has re-emerged as a compelling strategy...

Not So Lazy Prices

By Liam Hynes, PhD – S&P Global Market Intelligence: Systematic investing has always been a story of expanding information sets. Prices, then fundamentals, then...

The Hidden Beta in LLM Recommendations

By Victor Brassart and Dan Edelstein at Hafnium: As LLMs become useful in coding, copywriting, and even mathematics, it is natural to ask whether...

Edge Hunting Across Eras

“I have always looked for an advantage or an edge in markets, and I still do,” says Peter Warren. Over more than four decades...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -