Founded in 2013 by Eric Peters, One River Asset Management ("One River") is an innovative asset manager dedicated to fundamentally changing the way large institutions utilize alternative investments. Similar to the way Apple unbundled the music industry by breaking albums into component songs, we unbundle the investment universe into discrete portfolio building blocks. These building blocks are high-conviction investment strategies, developed and managed in-house by our diverse team of investment professionals with deep expertise in volatility, thematic macro, systematic, and inflation trading/investing. One River's strategies are delivered via commingled funds, and/or in bespoke combinations for large institutions via fund-of-one structures.
Volatility: We manage a dedicated Long Volatility strategy, structured to profit from a rise in cross asset volatility levels. We take a value-oriented approach to portfolio construction, looking for the best risk-reward opportunities to be long volatility across the globe, with a dominant allocation to equity and other high-beta volatility. The highly-convex strategy is built to minimize carry, and to crystalize profits through rebalancing and asset class rotation.
Systematic: We manage liquid systematic strategies uniquely informed by deep quantitative research combined with our discretionary macro and volatility expertise. Our strategies are sensibly constructed, using a limited number of parameters to improve robustness. We embed common-sense risk management logic into our algorithms. Strategies offered: Trend, Carry, Capped Volatility Selling, Equity Factors, and Diversified (a combination of all four strategies).
Thematic Macro: One River's team identifies high conviction global macro investment themes that we believe will unfold over the medium to long-term. We do deep fundamental research, assess the market opportunities these themes present, build discrete portfolios for each, and dynamically manage these market exposures as fundamentals and valuations evolve. We then time, size and weight these themes into an absolute-return thematic macro portfolio.
Inflation: We manage a strategy focused on opportunities across global inflation markets. Following a 25-year period of unusually stable inflation, we are entering a more volatile regime in which the opportunities to profit from absolute and relative movements in global inflation rates are likely to be substantial and enduring. The strategy combines directional, relative value, and idiosyncratic inflation trades/investments into an absolute return portfolio.
Using our array of unbundled strategies, we work closely with our client's senior investment-team members to create solutions that meet their specific needs. We partner with bespoke clients in one of three ways; (1) they present us with an investment need to tilt their portfolio and/or hedge a specific risk and we then create a combination of our strategies to achieve that objective, (2) they ask us to build a holistic, stand-alone portfolio of our strategies that is designed to fit well within their larger alternatives portfolio, and (3) they turn to us for solutions that materially reduce the expense ratio of their existing portfolio while maintaining equivalent market exposures.
One River is based in Greenwich, Connecticut and manages assets across a range of commingled funds and bespoke mandates for a number of the world's most prestigious institutions. Eric Peters, CEO & CIO of One River is also the author of an investment letter called "Weekend Notes" which is read by investment professionals who directly deploy over $1 trillion in alternative assets.