With those formalities sorted out, let’s jump straight in at the deep end. I would keep my exposure to beta risk – whether credit beta or equity beta – quite low, at least until the world returns to some sort of normality (whatever that means), and that could take many years. Alpha returns are notoriously difficult to come by, so alpha risk is also low on my list of priorities. Credit risk and gamma risk are my top picks with the latter being my undisputed favourite at the moment.
