ABOUT THE BOOK

Portfolio insurance is a new investment concept that, over the past 10 years, has grown from virtual non-existence to institutional assets valued at more than $50 billion. In fact, portfolio insurance is the fastest growing investment strategy in history. This book is a collection of the best current thinking on the subject-its contributors, both academic and institutional, comprise a virtual “who’s who” of portfolio insurance. You’ll learn what portfolio insurance is, how it evolved, how “dynamic hedging” works, and how to create-or hire on investment manager to create-a portfolio insurance program to meet your long-term financial planning needs. Section 1 of portfolio Insurance: A Guide to Dynamic Hedging explores the evolution of basic principles of portfolio insurance. Section 2 examines a wide spectrum of practices, including some creative applications of dynamic hedging that extend beyond simple insurance. Section 3 discusses practical considerations Section 4 traces portfolio insurance to its origins in academic financial theory.