RT Journal Article SR Electronic T1 Weather Derivatives JF The Journal of Alternative Investments FD Institutional Investor Journals SP 65 OP 74 DO 10.3905/jai.2004.439650 VO 7 IS 2 A1 David van Lennep A1 Teddy N Oetomo A1 Maxwell Stevenson A1 André de Vries YR 2004 UL https://pm-research.com/content/7/2/65.abstract 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.