How can I use alternative investments?

 

Investors today have broader access to alternative investment options than ever before. And while specific alternatives have different characteristics, in general they rely less on markets and more on investment selection for returns, which can make them effective diversifiers. Alternative mutual funds and registered alternative funds offer greater transparency and easier access to capital compared to unregistered private funds. However, we believe traditional vehicles still offer investors the widest range of investment opportunities and greatest return potential.

 



Investors should choose alternatives that align with their distinctive goals. Commonly cited objectives include the following:

Contents vs. containers: Integrating alternatives into an investment plan

The choice of investments available is growing, and with it, the potential to find greater diversification.

Capitalizing on market inefficiencies in global stock markets

All markets have inefficiencies; savvy investors can seek to exploit these inefficiencies to pursue gains.

Managing interest rate risk in fixed income portfolios

Is the era of ultra-loose monetary policy coming to an end? A long/short strategy is one tactic that can help in a rising-rate environment.

Limiting your exposure to extreme market moves

Investors can reduce how much stock market fluctuations affect their portfolios by investing in funds with lower net market exposures, such as market neutral or long/short strategies.

Seeking broader diversification using hedge funds

Hedge funds feature a broad opportunity set, are less dependent on market direction and can capitalize on market inefficiencies.