Risk Mitigating Strategies

October 2019

Risk Mitigating Strategies, or “RMS,” is an asset allocation program designed by Meketa Investment Group to provide institutional portfolios with robust diversification benefits and defensive characteristics relative to growth-like asset classes such as equities and credit. RMS programs are designed to have low correlations to equities and traditional assets on average, but especially to have the potential to profit from turbulent markets or equity drawdowns by having low to negative conditional correlations to equities during these times.

RMS programs generally incorporate at least several of the following asset classes: Long Term Treasuries, Trend Following, Global Macro, Long Volatility, and Alternative Risk Premia. Meketa tailors RMS programs to each investor’s objectives and constraints. Meketa favors a portfolio approach when constructing an RMS program, as no single strategy can effectively fulfill all return and risk objectives of the program.