Video: Mitigate Duration Risk with Alternative Bond Funds

In this video, Altegris CIO Jack Rivkin makes the case for liquid alternative funds, such as the Altegris Fixed Income Long Short Fund, by saying they help investors maintain market exposure during volatile times. In terms of fixed income, Mr. Rivkin says the key is to shorten duration, and thereby reduce interest-rate sensitivity. He says he’d consider shorting anything with a maturity of greater than 10 years, and that he likes high-yield bonds. Only 10% of high-yield bonds are going to mature in the next three years, according to Mr. Rivkin, who says most investors should allocate between 20-25% of their assets to alternatives.

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