Fund ExplorerIndicesInsightsVideosPricing

A Horse Race of Liquid Alternatives

Portfolio Protection via Liquid Alts?

Nicolas Rabener
10 min read
17 Jun 2019

SUMMARY

  • Investors can access alternative strategies via mutual funds and ETFs
  • Most of these show moderate to high correlations to equities, which is concerning
  • Bonds would have been a better diversifier in recent years

INTRODUCTION

Investing is challenging as it is complex and complicated, which requires continuous learning and updating of mental frameworks. Conflicts and contradictions are found everywhere. For example, data from the mutual fund industry shows that most funds fail to outperform their benchmarks, but investors in hedge funds allocate primarily for alpha generation as shown by the latest JP Morgan industry survey. If mutual funds do not generate any alpha, why should hedge funds? (read Hedge Fund Factor Exposure & Alternatives)

Keep reading with Institutional

Includes the full research library of 400+ articles, plus Returns Analyzer and Risk Analytics for return and risk contribution analysis.