Bringing you live news and features since 2006 

Windham Capital launches new approach to risk addressing turbulence on global markets


Independent investment firm Windham Capital has launched innovative risk measures that mark a new approach to asset management through changing market conditions by managing risk as a cycle, not an event.  Available for the first time to private investors, the Windham strategy is not based on price volatility alone – as are most other models – but instead measures the interactions among asset classes to gauge opportunities in all market environments.

Windham’s approach addresses the fact that risk has hidden linkages across the broader economy, making the global markets even more fragile.  Expectations for sustained slow economic growth and continued market volatility signal a time to proactively manage risk rather than react to it.
“We focus on how risk evolves, not simply when it occurs, with a research-intensive approach that can measure risk, detect changes and manage it in an effort to maximize returns,” says Mark Kritzman, CIO of Windham Capital.  “In short, our proprietary measures enable us to exploit the relationship between risk and return to help investors achieve the best possible outcome, whether the markets are calm or turbulent.”
Through its Windham Investment Risk Cycle, Windham uses proprietary measures of risk, including turbulence, which shows the interactions among a wider set of assets and is designed to anticipate broader market selloffs, and systemic risk, which reflects how fragile a market might be based on whether it is “tightly coupled” (unrelated sectors move in unison) or “loosely linked” (little price correlation).
“This economy is forcing investors to break the old habit of analyzing historical norms to anticipate where the best returns will be,” says Stan Shelton (pictured), managing partner, Windham Capital. “Windham’s approach is unlike others in that we seek to invest intelligently throughout the entire risk cycle, measuring current conditions to determine where to be at all times, rather than simply timing when to get in or out of the market.”

Latest News

BlackRock's iShares, an undisputed leader among European ETF issuers, pushed further ahead in Q1 with EUR173 billion in trades, triple..
European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..

Related Articles

etf active trading
Latest Morningstar data shows actively managed ETFs’ share of the US ETF market rose to 8.5 per cent at the...
Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by