PT - JOURNAL ARTICLE AU - Mark Keleher AU - Jamie Cashman AU - Jon Platt AU - Keith Eiger TI - The Quest for Beta: <em>Balancing Risks with Costs and Returns</em> AID - 10.3905/joi.2010.19.2.102 DP - 2010 May 31 TA - The Journal of Investing PG - 102--112 VI - 19 IP - 2 4099 - https://pm-research.com/content/19/2/102.short 4100 - https://pm-research.com/content/19/2/102.full AB - Over the last decade, the role of the transition manager has evolved dramatically. Originally conceived as a cost-minimization trading program, transition management is now viewed primarily as a holistic risk management exercise. Transition managers frequently employ derivative overlays to manage the beta risks that may arise across complex restructurings. Consistent with the horizon for most transitions, these derivative overlays have tended to be short-term in nature. In recent years, however, select transition managers have leveraged their experience and derivatives expertise for longer term "beta management" assignments which may be related to ongoing cash equitization, rebalancing, hedging, portable alpha, or liquidity programs. This article explores the wide range of beta management instruments currently available and describes the potential risks which much be balanced to achieve client objectives.TOPICS: Risk management, derivatives, exchange-traded funds and applications