How To Diversify With Alternatives

UBS advises maintaining alternative investments in portfolios for diversification and return generation despite geopolitical and credit market headwinds. Investors are urged to focus on high-quality, non-cyclical opportunities and maintain disciplined liquidity management.

Key Takeaways

• 1.Alternative investments remain essential for long-term portfolios as diversifiers and return generators, though geopolitical risks necessitate selective positioning.
• 2.Hedge funds have shown positive performance in 2026, with equity hedge strategies leading, while private market investors should prioritize quality and non-cyclical assets.

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

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