Explore how alternative investments – especially hedge funds – are paving the way for diversified, stable returns amid market volatility.
In our latest white paper, "The Comeback of Alternatives: Why a Strategic Allocation to Hedge Funds Makes Sense," we focus on the resurgence of alternative investments and their critical role in modern portfolios.
Since 2020, the performance of alternative funds has significantly improved after a “lost decade”. The return of inflation and positive real interest rates has generated volatility and dispersion across almost all asset classes. However, will this performance upswing continue? How can we select alternative strategies that add value to a diversified portfolio? Should it be a tactical or strategic allocation? The key role of a portfolio allocation to alternatives is to provide diversification away from traditional assets and a certain level of protection and stability. As always, a significant part of the answer lies in implementation.
In this white paper, UBP’s AIS team delves into this topic and charts a roadmap on how to navigate hedge fund investments effectively. It introduces five foundational pillars that guide professional investors through the complexities of hedge fund investments. These include adopting a buy-and-hold mentality, constructing predictive performance models, and the intricate process of manager selection.
For anyone considering augmenting their investment portfolios, this paper also discusses the various types of hedge fund strategies that could align with different market conditions and investor goals. Identifying tailwinds or headwinds for each strategy is imperative, especially in a market characterised by higher volatility and inflation.
