The Two Principal Benefits
Alternative investments are becoming an increasingly important part of institutional investors’ portfolios. Through their ability to go short, hedge funds in particular have the potential to make positive returns in both up and down markets. As a result, “alternatives” offer two principal benefits.
First, returns often exhibit low levels of correlation with traditional asset classes, thereby providing excellent portfolio diversification characteristics.
Second, returns are often generated at lower levels of volatility, contributing to exceptionally attractive risk-adjusted returns at the portfolio level. On this basis, an allocation to a diverse group of alternatives can add significant value.
A Growing Expertise in Advising Clients
Independent Strategy has developed a growing expertise in advising clients on alternative investment strategies. Many of the world’s best-known hedge fund managers are, or have been, among the company’s most prominent clients. And in recent years the firm and its partners have become increasingly involved with a number of leading private equity groups.
We have also developed our own analytical capability investigating the performance of various alternative asset and hedge fund styles in different market conditions.