
Unlocking opportunities with liquid alternative investments
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Why liquid alternatives?
Seeks to deliver consistent investment outcomes
Liquid alternative strategies aim to provide consistent returns across market cycles by tapping into differentiated return drivers. By seeking sources of return that are less correlated—or even negatively correlated—with traditional markets, these strategies can enhance portfolio diversification and potentially improve risk-adjusted outcomes.
Risk: Diversification and asset allocation may not fully protect you from market risk.
Mitigating downside risk
Liquid alternative strategies are designed to help cushion portfolios during market downturns. By maintaining a low beta to equities, these strategies can offer meaningful diversification when traditional markets decline—providing critical downside protection precisely when it’s needed most.
Risk: Risk management cannot fully eliminate the risk of investment loss.
Enhancing diversification
Incorporating a diverse mix of liquid alternative strategies can help create a more resilient portfolio.
Hedge Fund Outlook

Raffaele Savi: Something very interesting is happening to investment management.
In the last 40 years, the largest managers have systematically, substantially outperformed smaller managers. And I think that the two reasons why that that's been true, one is the role of technology. So as investment processes are becoming more and more efficient at absorbing information and leveraging information and building systems that can scale and multiply the value of those insights, whether it's generative AI where these models are getting larger and larger, or whether it's technology firms where in the last 10 years, there's been the emergence of the trillion dollar market cap firm. The ability to do this at scale is an important advantage.
Source: HFR. Larger managers are defined as those in the first quartile of HFR by AUM. As of August 31, 2024. For illustrative purposes only. The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results. Performance period is from July 31, 2004–July 31, 2024.
Investment skill at scale
At BlackRock, we empower our hedge fund investors to operate seamlessly at scale. We harness expertise, global reach, and proprietary technology to deliver solutions across geographies, asset classes, and investment styles. Discover the advantages of investing at scale with Raffaele Savi, Global Head of BlackRock Systematic.
BlackRock Liquid Alternative Platform
BlackRock offers a comprehensive range of liquid alternative strategies across: fundamental and systematic, equity, fixed income, multi-strat, macro and event-driven, diversified, regional and sector-specific, commingled funds, custom solutions and co-investments.
BlackRock’s platform supports our managers to maximize their performance and operate at scale through:
-
Our trading operations span every asset class, with over $1 trillion1 in securities traded daily, giving our liquid alts teams access to better pricing and liquidity, tighter execution spreads through internal matching and access to market insights from specialist traders.
-
Our scale enables 57% realized annual execution cost savings for Fixed Income, and 22% for equity2, enabling BlackRock to offer competitive fees.
-
BlackRock Capital Markets is our central deal engine to originate unique transactions, negotiate attractive pricing and allocation across 6,000+ deals sourced annually.3
-
BlackRock's extensive corporate relationships enables 1.5 times more access to C-suite executives compared to brokers4.
-
Leveraging the collective intelligence of BlackRock’s 5,500+5 investment professionals.
-
Over 3,0006 risk factors monitored daily by Aladdin our portfolio and risk management technology.
There is no guarantee that a positive investment outcome will be achieved. While proprietary technology platforms may help manage risk, risk cannot be eliminated.
Notes: All $ figures refers to USD.
1 BlackRock, 31 March 2025.
2 BlackRock analysis of all Fixed Income High Yield and Investment Grade Credit, FX, and Equity trades including derivatives for 2024 as of June 30, 2024. BlackRock Execution Cost is the average difference between: the actual price achieved on the trade and the benchmark price. For Equity and FX, benchmark price is the market price, based on exchange data at the time when the PM submitted the order. For Fixed Income, benchmark price is the previous day’s closing price. The Market Half Spread (or Expected Cost) is an estimate of the average execution cost of a market participant. For Fixed Income, Market Half Spread is estimated quarterly for each sector and maturity bucket based on a consensus opinion of BlackRock traders as well as a set of over 10 broker dealers.
3 BlackRock as at 31 March 2025. Number of deals sourced in FY2024 through BCM and investment teams. Retrieved from eFront.
4 BlackRock, FY2024 figure.
5,6 BlackRock, as of 31 March 2025.
Our team of experts
Our investors have an unrelenting focus on generating alpha for our clients. By leveraging diverse backgrounds and approaches, our experts collaborate with portfolio construction and risk management teams to develop strategies focused on consistent alpha generation, regardless of market conditions.






