As bonds failed to provide protection in 2022, investors have turned to liquid alternatives, which offer exposure to asset classes or investment strategies that are considered alternative to traditional assets with similar liquidity profiles. Examples include hedge funds, commodities, and REITs.
As equities and bonds suffer in a challenging macroeconomic environment, liquid alternatives have made a comeback. Investors are plowing money into strategies such as managed futures, volatility, long-short equity, and more. Since last year, as bonds and stocks stumbled, inflows have surged into liquid alternatives. Liquid alts are mutual funds, closed-end funds, and ETFs that invest in alternative investment strategies offering downside protection and diversification opportunities while providing daily liquidity which makes them accessible to all investors.
Liquid Alts Offer Endowment Style Investing to Individuals. Liquid alternatives consist of a wide variety of investment options, strategies and portfolio options. Alternative investment prevalence has been growing in recent years among both everyday investors and large financial institutions. This growth in popularity has largely benefitted individual investors in mulitple respects. Alternative investments have historically …
Liquid Alternatives Enable Access for Individuals to Alternative Investments Read More »
Democratizing of Alts Continues Globally. Alternative investments increasingly are in the spotlight for market observers who see their strong outcomes in today’s volatile market environment. These investments include, for example, managed futures, commodities, hedge funds, and private equity. The world of alternative investments is continuing its transition from a relatively exclusive investment asset cateogry for …
Alternative Investments Yielding Strong Diversification Outcomes Read More »
Liquid alternatives are showing strong performance amid the Covid-19 environment. According to a new report from Lyxor Asset Management, undertaking for collective investment in transferable securities investments (UCITS) employing alternative strategies are doing particularly well. Specifically, these investments are performing as designed, with their diversification benefits affording investors and their financial advisors the lower volatility …
Liquid Alternatives Mark Gains, Delivering on Diversification Promise Read More »