This video continues Brian Haskin’s discussion with Walter Davis of Invesco, and they begin by discussing how an investor can get started in the alternatives market. Mr. Davis suggests starting by using the internet to self-educate as much as possible, as advisors and investment companies are still occasionally under-educated about liquid alts.
Mr. Davis considers long/short equity to be the best first investment step, because it’s an easy strategy to understand, and as volatility is coming back to the market, adding some shorts can help weather the storm. He also touches on manager selection, advising clients to “roll up their sleeves” and do their homework, adding that there is no easy solution to choosing a good manager. It’s vital to look at track records, both of the manager and of the strategy itself.
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