TY - JOUR T1 - Analyzing Alternative Hedging Strategies JF - The Journal of Wealth Management SP - 8 LP - 17 DO - 10.3905/jwm.2003.320469 VL - 6 IS - 1 AU - Scott Welch Y1 - 2003/04/30 UR - https://pm-research.com/content/6/1/8.abstract N2 - The author starts by suggesting that, for investors who remain bullish about the future performance of their stock holding, but who also recognize the need for increased diversification, hedging is a viable alternative. He suggests that the primary hedging techniques involve the use of equity collars or variable prepaid forwards. Arguing that variable prepaid forwards are a superior approach, the author turns to the question of determining which particular VPF strategy is best for a given investor situation. The article presents an analytical framework for comparing alternative variable prepaid forward hedging strategies, and lays out a process for determining which strategy is best, given the investor's goals and objectives. ER -