Diversify With Alternatives

UBS recommends diversifying into alternative investments, specifically hedge funds, private equity, and infrastructure, to navigate high market dispersion and economic volatility. These assets provide risk management and inflation-linked returns as traditional asset correlations shift.

Key Takeaways

• 1.Global macro and multi-strategy hedge funds are well-positioned to capitalize on market volatility and high stock dispersion.
• 2.Private equity performance is expected to improve, supported by resilient US macro conditions and a rise in deal activity, particularly in energy and hard assets.
• 3.Infrastructure assets offer resilient, inflation-linked returns with low correlation to traditional assets, making them attractive in slower growth environments.

Table of Contents

• Diversify with alternatives
• Hedge funds
• Private equity
• Select direct lending
• Private real estate and infrastructure
• Appendix
• Global asset class preferences definitions
• Risk information

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