Turning down the vol: how to manage risk in a climate of fear

Mint Asset Management chief, Rebecca Thomas, explains an active strategy that can take the edge off losses in volatile times…

The roller-coaster ride of volatility is back.

After years of unnatural calm on global share markets, 2018 began and has almost ended with a sharp reminder that prices can rapidly travel in more than one direction.

Theoretically, active managers should prove their worth during those moments of volatility. Mostly, media stories focus on the bargain-shopping opportunities in oversold markets.

And while there is some truth to the ‘shares on sale’ story, active managers can also deliver value by avoiding shakier stocks in the first place …