Asset allocation is an effective way to manage the risk of tail events. However, it cannot fully hedge against such events or consistently generate Crisis Alpha. There are liquid alternative investment strategies, such as managed futures (with a global track record since the 1980s), that have demonstrated the ability to generate positive returns during tail events due to their positive skewness and right-tailed return distributions. Globally, managed futures are a favored alternative hedge fund category for diversification, particularly among long-only pension funds and university endowment funds. As a result, managed futures can help generate Crisis Alpha, which can then be used to purchase undervalued equity units during a tail event.

Charts, moving averages, 52-week highs, Z-scores, Sharpe ratios, etc., are key tools for analyzing price momentum. Fund managers are increasingly acknowledging the nuances of momentum investing or at least incorporating momentum tools to enhance their decision-making processes. For a long time, managers—particularly in the Indian context—have disregarded research papers and academic work by prestigious hedge funds (e.g., AQR Capital) and institutions like MIT and IIM-A, dismissing them as mere speculation that does not work. Even Professor Aswath Damodaran mentioned in one of his interviews on an Indian news channel that, for the past 40 years, Indian markets have been dominated by long-only momentum investors.