crossover between asset classes

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HolyUnicorn

Senior Member
Mandarin / the Shanghai Dialect
Hello,

To truly be multi-asset, a firm must not only trade more than one asset, but there needs to be some crossover between asset classes.

“A lot of people look at it at a firm-wide level and say, ‘Oh they’re multi-asset class traders because they trade options and futures,’” said Nabicht. “But that’s different from having strategies which require trading across multiple asset classes.”

From Multi-Asset Trading Means Cross-Asset Trading - Markets Media

I am reading an article about the difference between “multi-asset” and “cross-asset”. “Crossover” seems to be key to understanding the difference. But how can I interpret “crossover” here? Does it mean connection? Or does it mean a single strategy covers all the asset classes ?

Crossover

2 [countable, uncountable] the fact of liking, using, or supporting different types of things or groups

crossover | meaning of crossover in Longman Dictionary of Contemporary English | LDOCE
 
  • lingobingo

    Senior Member
    English - England
    The standard definitions of “crossover” won’t explain its specific use in the specific context of investments.

    But apparently “a crossover fund is an investment fund that holds both public and private equity investment”.
     

    The pianist

    Senior Member
    English - US
    Hello,

    To truly be multi-asset, a firm must not only trade more than one asset, but there needs to be some crossover between asset classes.

    “A lot of people look at it at a firm-wide level and say, ‘Oh they’re multi-asset class traders because they trade options and futures,’” said Nabicht. “But that’s different from having strategies which require trading across multiple asset classes.”

    From Multi-Asset Trading Means Cross-Asset Trading - Markets Media

    I am reading an article about the difference between “multi-asset” and “cross-asset”. “Crossover” seems to be key to understanding the difference. But how can I interpret “crossover” here? Does it mean connection? Or does it mean a single strategy covers all the asset classes ?

    Crossover

    2 [countable, uncountable] the fact of liking, using, or supporting different types of things or groups

    crossover | meaning of crossover in Longman Dictionary of Contemporary English | LDOCE
    "Crossover" in this context means a strategy which allows one to have an account or accounts which permits buying and selling in different asset classes simultaneously. For example,

    a) I go long on a block of MSFT stock, and simultaneously to hedge my bet I get into commodities and short an amount of gold, silver, platinum, cotton, soybeans, or whatever appeals to me. This is crossover. I am not sticking to one asset class. Most retail investors will deal in only stocks or mutual funds.
     
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