An asymmetric payoff (also called an asymmetric return) is the set of possible results of an investment strategy where the upside potential is greater than the downside risk.[1] Derivative contracts called “options” are the most common instrument with asymmetric payoff characteristics.[2] Hedge funds that employ this kind of investment strategy include Universa Investments, A North Investments, Pershing Square Capital Management, and others.[3][4][5]
References
- ^“Seeking Asymmetric Returns” (PDF). Alliancebernstein.com. Retrieved 7 October 2014.
- ^“Option”. Investorwords.com. Retrieved 7 October 2014.
- ^“Universa Investments”. Universa.net. Archived from the original on 6 October 2014. Retrieved 7 October 2014.
- ^“A North Investments”. Anorthinvestments.com. Archived from the original on 6 October 2014. Retrieved 7 October 2014.
- ^“Pershing Square Capital Management”. Pershing.com. Retrieved 7 October 2014.