Noted Tail Risk Expert Vineer Bhansali Announces New Asset Management Firm and Portfolio Manager

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Vineer Bhansali, Ph.D. is pleased to announce the formation of LongTail Alpha LLC, a new investment management advisory firm that will provide qualified investors with the opportunity to benefit from the experience of one of the most accomplished tail risk experts in the financial industry.

LongTail Alpha believes that sustained portfolio performance comes from expecting the unexpected, and positioning portfolios to earn yield while maintaining convexity. The firm will blend a solutions approach with additional value provided through applying decades of experience in active portfolio implementation of these techniques.

Few portfolio managers bring more experience and rigorous academic depth to asset management than Dr. Bhansali, 49, an accomplished financial expert who has spent the past 16 years at Pacific Investment Management Company LLC (“PIMCO”), where he is a managing director. At PIMCO, Dr. Bhansali served as the head of quantitative investment portfolios, managing almost $50 billion notional value in tail risk portfolios for some of the world’s largest corporations, pensions, funds of hedge funds, and sovereign wealth funds. Among other accomplishments, Dr. Bhansali was the lead portfolio manager and designer of the algorithm behind the PIMCO TRENDS Managed Futures Strategy Fund, which was the firm’s first systematic, rules-based mutual fund.

Dr. Bhansali is a well-known and widely quoted expert on options pricing, portfolio construction, fixed income factor modeling, tail risk management, and trend following. He is also a prolific author or co-author of four books, and numerous academic and professional journal papers on finance and his educational specialty of physics.

“I am eager to embark on this new stage in my career, and apply my professional and academic experience for the benefit of clients,” said Dr. Bhansali. “With another cycle of uncertainty disrupting financial markets, this is an excellent time to start a firm that can help clients navigate the volatility.”

By using a proprietary framework based on academically rigorous research and tested over two decades of implementation, the firm will assist investors in analyzing the risks in their portfolios, hedging both “left-side” or negative tail risks and “right-side” or positive tail risks. LongTail Alpha will also deliver robust portfolios by combining market positions that optimally hedge the sale and purchase of risks across asset classes.

PEOPLE

Vineer Bhansali, Ph.D.

Chief Investment Officer

Vineer Bhansali’s 24-year investment career started at Citibank, where he founded and managed the Exotic and Hybrid Options Trading Desk. He later joined Salomon Brothers Fixed Income Arbitrage Group, where he traded foreign currency options and municipal bonds, followed by the Credit Suisse First Boston Proprietary Trading Group. Dr. Bhansali was at PIMCO for 16 years, serving the last eight years as Managing Director and Head of the Quantitative Portfolios Team, which he founded in 2008. Dr. Bhansali also managed all of PIMCO’s analytics from 2000 to 2010. Among other responsibilities, he was the lead portfolio manager for the PIMCO TRENDS Managed Futures Strategy Fund, lead manager of the PIMCO Tail Risk Hedging Funds, portfolio manager of the PIMCO RealRetirement and RealPath Funds, co-manager of the PIMCO Global Multi-Asset Fund, co-manager of the PIMCO Global Relative Value Fund, co-manager of the PIMCO Distressed Senior Credit Opportunities Fund, and portfolio manager of a series of PIMCO indexed ETFs. He has written four books on finance: “Pricing and Managing Exotic and Hybrid Options”; “Fixed Income Finance: A Quantitative Approach”; “Bond Portfolio Investing and Risk Management”; and his most recent, “Tail Risk Hedging,” and authored over 25 refereed papers on topics as varied as option pricing, fixed income, tail hedging, asset allocation and economics in leading Journals that include the Journal of Finance, Financial Analysts’ Journal, Journal of Portfolio Management, and Journal of Risk. He has received numerous awards, including the Graham and Dodd Scroll Award and TIME magazine’s college achievement award. Under Dr. Bhansali’s leadership, PIMCO received the Risk Manager of the Year Award in the asset-management category in 2002 from Risk Magazine. In its announcement of the award, PIMCO cited “a proprietary system developed in-house by PIMCO's Vineer Bhansali, Ph.D. and his team.”

In his forward to Dr. Bhansali’s book, Tail Risk Hedging: Creating Robust Portfolios for Volatile Markets (McGraw-Hill, 2014), former PIMCO Chief Executive Officer and Co-Chief Investment Officer Mohamed El-Erian, wrote: “For insights on these critical issues, including how to adapt risk management approaches to today’s (and tomorrow’s) realities, investors would be well advised to look to Vineer Bhansali’s brilliant book. Drawing on his pioneering and highly regarded work on the subject, Vineer provides readers with valuable insights on the why, what, how, and when of portfolio tail hedging.”

Dr. Bhansali received his Ph.D. in Theoretical Physics from Harvard University in 1992 and M.S. and B.S. degrees in Physics from Caltech in 1987. He has also delivered over 100 conference presentations, including the Q-Group, JOIM, Quant Congress and Risk.

For more information on LongTail Alpha, visit www.longtailalpha.com.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151222005196/en/

Sitrick and Co.
Seth Lubove, 310-788-2850
[email protected]

Source: Longtail Alpha LLC

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