PIMCO managing director Vineer Bhansali has stepped down from the firm to start his own investment management advisory firm, called LongTail Alpha.
The newly created firm will help investors in analyzing the risks in their portfolios, hedging both left-side or negative tail risks and right-side or positive tail risks.
The company aims to offer robust portfolios by combining market positions that optimally hedge the sale and purchase of risks across asset classes.
"LongTail Alpha believes that sustained portfolio performance comes from expecting the unexpected, and positioning portfolios to earn yield while maintaining convexity," a statement from LongTail said.
Bhansali, who worked for 16 years at PIMCO, has held several roles at the firm including managing director, head of quantitative investment portfolios and also as lead portfolio manager and designer of the algorithm behind the PIMCO TRENDS Managed Futures Strategy Fund.
Bhansali said: "With another cycle of uncertainty disrupting financial markets, this is an excellent time to start a firm that can help clients navigate the volatility."