PT - JOURNAL ARTICLE AU - David van Lennep AU - Teddy N Oetomo AU - Maxwell Stevenson AU - André de Vries TI - Weather Derivatives AID - 10.3905/jai.2004.439650 DP - 2004 Sep 30 TA - The Journal of Alternative Investments PG - 65--74 VI - 7 IP - 2 4099 - https://pm-research.com/content/7/2/65.short 4100 - https://pm-research.com/content/7/2/65.full AB - This article demonstrates that companies from a wide range of industries are able to hedge against the volatility of their revenues more efficiently by resorting to non-standardized weather derivative contracts. In addition, including weather derivatives contracts as an additional asset class produces significant diversification benefits for conventional portfolios. This study proposes that institutional investors write non-standardized contracts for their corporate clients, repackage them, and offer them as an additional asset class. This strategy would help to mitigate the lack of liquidity inherent in non-standardized contracts and, simultaneously, provide significant diversification benefits for the conventional portfolio.