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FERI (Luxembourg) S.A.

+352 270448-0
+352 270448-729

L-1528 Luxembourg
18, Boulevard de la Foire

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FERI expands range of liquid alternative investments

Bad Homburg, 5/25/2023
  • Attractive return opportunities of volatility strategies in the current market environment
  • Further development of successful hedge fund strategies and the Flex family as elementary components of FERI's multi-asset investment approach
  • Broadening of portfolio management team and further development of risk management

The Bad Homburg-based multi-asset investment house FERI is further expanding its offering in the area of liquid alternative investments. "In view of the structurally changed interest rate environment and the sustained return of volatility in the global financial markets, we have decided to further develop and expand our range of liquid alternative investment strategies for our investors," explains Dr. Marcel V. Lähn, Chief Investment Officer at FERI. In addition to liquid hedge fund strategies, this primarily concerns the volatility funds of the Flex family, he said. "With the OptoFlex strategy, we developed an innovative solution for collecting volatility premiums for our customers more than ten years ago," emphasizes Carsten Hermann, Managing Director of FERI Trust GmbH and already responsible for the FERI volatility concepts as Head of Investment Management since 2012. The extremely successful and multiple award-winning concept of OptoFlex had set new standards in the field of alternative investments for professional investors over the past years, because it enabled attractive returns beyond the classic bond and equity strategies in the low-interest environment and thus contributed significantly to the stabilization of portfolios.

Positive return outlook

"In the environment of increased interest rates, institutional investors are now once again turning more to classic fixed-income products. As a result, classic volatility strategies as pure interest rate substitute products are no longer as much in focus," Hermann explains. At the same time, the prospects are still very attractive: "The interest rate turnaround has also significantly increased the base yield level for the OptoFlex strategy - moreover, the current market conditions with high volatility premiums again allow the realization of attractive excess returns," Hermann emphasizes.

FERI will integrate liquid hedge funds as well as its in-house volatility concepts even more strongly into the investment house's holistic multi-asset approach in the future. "The equity market as an underlying will assume greater importance in our alternative asset strategies in the future, but also the hedge fund area as a whole," Lähn said. He also said the company wants to open up access to the concepts to broader investor groups.

Volatility as an asset class in its own right

Following the great success of OptoFlex and EquityFlex, both systematic and rule-based option premium strategies based on the U.S. equity market, the investment approach was expanded to include the European equity market as early as 2021 with EuroEquityFlex. The volume of all volatility strategies managed by FERI currently exceeds 3 billion euros. In view of the strategic growth prospects, the portfolio management of these concepts will be adapted and broadened, and the associated risk management will be optimized at the same time. "For us, volatility is a separate liquid alternative asset class that benefits from market fluctuations. Corresponding strategies will therefore continue to be indispensable in the portfolio context of both institutional and private investors and for this reason are an elementary component of our multi-asset investment approach," says Dr. Marcel V. Lähn.

About FERI

Founded in 1987 and headquartered in Bad Homburg, Germany, the FERI Group has developed into one of the leading investment houses in the German-speaking area. FERI offers tailor-made solutions for institutional investors, family assets and trusts in the following areas:

The FERI Cognitive Finance Institute was formed in 2016. It is the strategic research centre and creative think tank of the FERI Group. The Institute focuses on innovative analyses and the development of methods for long-term oriented economic and capital market research. 

FERI and MLP currently manage assets of about EUR 54 billion in the Group, including round about EUR 18 billion in alternative investments. The FERI Group is headquartered in Bad Homburg and has locations in Dusseldorf, Hamburg, Luxembourg, Munich, Vienna and Zurich.

Media relations contact

Marcel Renné

Chairman of the Board

Rathausplatz 8-10

D-61348 Bad Homburg