Tails, You Lose

Risk managers face the uncertainty of tail events that can have an outsize impact on returns.

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Greg van Inwegen is in the catastrophe avoidance business. As chief investment risk officer at Ivy Asset Management, a $15 billion fund of hedge funds, van Inwegen patrols his firm’s portfolios with an eye toward potential financial peril. His approach is informed by a hard-earned appreciation for the unexpected: On September 11, 2001, van Inwegen was working for Deutsche Bank in one of the buildings across from the World Trade Center.

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