Report published August 17, 2026
How to Diversify with Alternatives: UBS Portfolio Positioning & Strategy
Source and citation context
- Issuer
- UBS
- Report date
- August 17, 2026
- Analysis as of
- Not stated in source
Authors / editors: Karim Cherif, Richard Huang, Tony Petrov, Antoinette Zuidweg, Matthew Carter, Jon Gordon
Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
UBS CIO advocates allocating to alternative investments, including hedge funds and private markets, to enhance returns, reduce volatility, and diversify long-term portfolios. While 1H 2026 performance and fundraising were strong, selectivity and disciplined liquidity management remain critical.
Key Takeaways
- 1.Alternative investments provide differentiated returns and diversification, but geopolitical risk and credit market stress require manager selectivity and liquidity awareness.
- 2.Despite a challenging July, hedge funds gained 7.4% in 1H 2026 (the best first half in five years), with discretionary macro, equity market neutral, and multi-strategy platforms positioned well for 2H.
- 3.Private market activity is rebounding, with global PE fundraising reaching USD 262bn in 1H 2026 and secondary volumes hitting a record USD 124bn (+28% y/y).
Table of Contents
- Key message
- 01 Hedge fund performance suffered in July but has been solid in 2026.
- 02 Private markets still offer opportunities for diversification, return generation, and income.
- 03 We see numerous paths to invest in alternatives, subject to careful risk management.
- New this week
- Did you know?
- Investment view
- Non-Traditional Assets
- Disclaimer
Report data
Key figures extracted from this report
| Metric | Estimate | Context |
|---|---|---|
| Hedge fund return in 1H 2026 | 7.4% | Strongest first half in five years for hedge funds |
| Global Private Equity fundraising | 262 USD billion | Already more than 60% of full-year 2025 total fundraising |
| Private equity secondary funds volume | 124 USD billion | Record first half volume for PE secondary funds |
| Cumulative infrastructure spending | 100 USD trillion | Cumulative spending across transportation, energy, digital, and social sectors |
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Authors / Editors
Reported Data Context
- Hedge fund return in 1H 2026: 7.4 % (1H 2026 (to end-June)) · Source: HFRI
- Global Private Equity fundraising: 262 USD billion (1H 2026)
- Private equity secondary funds volume: 124 USD billion (1H 2026) · Source: Lazard / Private Equity News
- Cumulative infrastructure spending: 100 USD trillion (by 2040) · Source: McKinsey