Hedging Equity Portfolio with S&P Index Futures

The speaker provides an example of how to use stock index futures to hedge the risk in an equity portfolio.  He talks through managing the beta, or sensitivity to risk, through backing into the number of futures contracts needed to hedge the portfolio.  He suggests that this method is not entirely realistic because the beta expectation for the S&P and the porfolio is not perfect.  Therefore, this hedge will not entirely remove the risk from the porfolio.