How to Diversify With Alternatives

UBS highlights that alternative investments continue to serve as vital portfolio diversifiers, though current market conditions necessitate a disciplined, selective approach. The report emphasizes balancing hedge fund liquidity with private market opportunities amidst geopolitical and credit-related risks.

Key Takeaways

• 1.Alternative investments remain a valid tool for long-term portfolios to achieve differentiated returns and diversification.
• 2.Geopolitical uncertainty and pockets of credit stress require a review of positioning, liquidity, and selectivity.
• 3.Private equity is viewed positively due to attractive valuations, but caution is advised in direct lending.

Table of Contents

• Key message
• Hedge fund performance has been solid this year, steadying portfolios.
• Private markets still offer opportunities for diversification, return generation, and income.
• We see numerous paths to invest in alternatives, subject to careful risk management.
• New this week
• One liner
• Did you know?
• Investment view
• Non-Traditional Assets
• Disclaimer