With rising demand for alternative investments, two articles explore the offerings in liquid hedge funds. Another article looks at a new platform that makes it easier for advisors to access alternative investments.
Alternative ETF Opportunities to Hedge Market Risks (ETF Trends, February 9)
In order to balance market risks, investors are looking towards alternative investments. Traditionally investors have utilized four main alternatives including real estate, commodities, hedge fund strategies and private equity. Salvatore Bruno, chief investment officer and managing director of Index IQ breaks down some of the ETF opportunities that investors can use to help neutralize risk and diversify a global portfolio.
Liquid vs. Traditional Hedge Funds and Alternatives (WealthManagement.com, March 03)
As part one in a three-part series, the author explores different alternative investment options and why they can benefit investors. “When delivering attractive risk-adjusted returns with low correlation to broader multi-asset class portfolios, alternatives can provide a valuable form of diversification.” This article focuses on liquid hedge funds.
‘Green’ Funds Flush with New Cash, Challenges as Trump Era Dawns (Investing.com, March 06)
Investors continue to push money into environmentally progressive funds in an attempt to protest President Trump’s plans to eliminate regulations. Despite solar companies seeing a decline in share price since the election, other renewable options such as wind and water show potential. These industries “should benefit from new federal infrastructure spending and a push by states such as California toward more renewable power generation.”
Online Platforms Help Advisors Add Alternatives (Investment News, February 15)
To keep up with the demand for alternative investments, new technology and service solutions must continue to develop. Both investors and borrowers are working together to build new online platforms, “but also to transform the way entrepreneurs, individuals and companies connect outside of the traditional capital markets.” With recent policy changes, real estate, marketplace lending, and other “historically hard-to-access” investments are now available to a wider group of investors.
Liquid Alternatives: A Look Back at Mercer’s Look Around (All About Alpha, February 23)
The author looks back at a September 2015 paper on “The Role of Liquid Alternatives in Wealth Management” from Mercer LLC. As liquid alternatives grow and adapt, Mercer defends the “investment case for alternatives in general and the current liquid alternatives landscape.” Mercer explores the risk/reward profiles of different liquid alternatives and how to incorporate them into a diverse portfolio.
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