An interview with an asset allocation strategist
April 2026
Claire Tremblay, asset allocation strategist in Montreal, joined us to discuss the realities of working with option-based protection, why team debate is a safeguard, and how institutional decisions are never as clear-cut as the models suggest. She shared her routine, the limits of hedging, and advice for staying adaptable.
Describe your typical routine as an asset allocation strategist using option-based protection.
My day starts with a review of our protection overlays—what options are in place, what’s expiring, and where the exposures have shifted overnight. The hardest part is dealing with imperfect information. You’re always making calls before all the facts are in. I spend a lot of time debating with the team, stress testing assumptions, and making sure we’re not falling into groupthink. It’s messy, but that’s the work.
What’s the most common misunderstanding about option-based portfolio protection?
The biggest misconception is that you can buy insurance and stop worrying. The truth is, every hedge has a cost and a trade-off. Sometimes the protection itself introduces new risks or dulls your awareness of what’s happening elsewhere. I focus on the dynamic nature of these positions—what worked last quarter may not help next time. You need to stay alert and adapt constantly.
Can you share a situation where team debate shaped a critical decision?
During the early stages of a market drop last year, we had to decide whether to roll hedges or let them expire. There was no perfect answer, and the decision process was tense. Our team’s habit of challenging each other openly helped. We debated the risks, and although not everyone agreed, we landed on a decision that balanced urgency with caution. That experience reinforced the value of critical debate—if everyone’s too agreeable, you’re in trouble.
What advice do you have for professionals entering institutional finance or advanced risk roles?
For those just entering this field, expect to be wrong—often. Don’t look for a playbook that works every time. Listen, test your logic, and welcome colleagues who push back on your assumptions. The most valuable learning happens in those uncomfortable conversations.
What’s the biggest myth you’d like to dispel about portfolio insurance or asset allocation?
I wish more people understood that these strategies are not about certainty—they’re about buying time and creating space to respond when things change fast. The idea that risk can be fully transferred or neutralized is a myth. We’re always working with shades of grey, and the best you can do is keep questioning your moves.