Addressing investors’ needs
Investors seeking to improve the performance characteristics of their portfolios require:
Additional return sources not accessible via traditional long-only investments: alpha and alternative beta
Portfolio diversification and/or protection
Efficient access to actively managed, uncorrelated investment strategies
Fixed income substitutes in an environment of low interest rates or as a hedge against rising rates
Long-only equity replacements in a world of high equity valuations
Most of these requirements can best be addressed through portfolios of liquid alternative investment strategies implemented as multi-manager solutions.
Advantages of alternative multi-manager solutions
Solutions to particular investors’ needs can be implemented through a single investment or a portfolio of investments, referred to as a multi-manager solution
Alternative multi-manager solutions have the benefit of being able to access a wide range of investment strategies, ranging from alternative beta to highly skill-based and actively managed strategies. They also provide specific or diversified exposures to asset classes across various time frames
The main advantages of alternative multi-manager solutions include:
Wider investment strategy universe
Portfolio management flexibility
Higher degrees of diversification
Mitigation of manager-specific risk
The wide range of advantages offered by alternative multi-manager solutions are an opportunity for investors to improve the risk/return profile of their existing portfolios.
Capital preservation and stable returns
Diversifying, trading based solutions with directional exposure help preserve capital and compound returns.
Skilled managers trading relative value or arbitrage strategies have proven over different market cycles that they deliver alpha with minimal volatility. These strategies would also benefit from higher interest rateskilled managers trading relative value or arbitrage strategies have proven over.
Investing in highly specialized managers can add a wide range of themes, return streams and risk profiles to a portfolio.
Alternative multi-manager solutions
Bespoke solutions designed to meet your specific requirements
This could include exposure to credit/lending, commodities, volatility, regional investments or megatrends