Alternative Investments Outlook and Strategy

J.P. Morgan maintains an underweight stance on alternatives compared to traditional assets, recommending overweight positions only in hedge funds and private infrastructure.

Key Takeaways

• 1.J.P. Morgan remains underweight alternatives vs. publicly-traded traditional assets, favoring only hedge funds and private infrastructure.
• 2.Private equity and private credit are facing significant headwinds, including valuation concerns and a wide discount to NAV.
• 3.Digital assets turn cautious; MicroStrategy's bitcoin purchases drive demand, but broader institutional momentum has cooled.

Table of Contents

• Overview
• Private Equity
• Private Credit
• Real Estate
• Private Infrastructure
• Hedge Funds
• Digital Assets