How to Diversify With Alternatives

Latest edition · June 29, 2026

How to diversify with alternatives en 1662516

Alternative investments remain essential for portfolio diversification and returns in 2026, though investors should exercise selectivity and careful risk management. Hedge funds and private markets continue to provide unique value despite current market headwinds.

This report emphasizes that alternative investments, including hedge funds and private markets, continue to serve as vital components for long-term portfolio construction. While performance has been solid, the authors warn that geopolitical volatility and potential AI disruptions in private equity require a disciplined approach to asset selection and liquidity management. Investors are encouraged to focus on high-quality direct lending and to diversify into non-cyclical sectors like infrastructure.

Key takeaways from the latest edition

• 1.Alternative investments remain a valid tool for long-term portfolio diversification, but investors should be selective due to geopolitical uncertainty.
• 2.Hedge fund performance is strong in 2026, particularly in equity hedge strategies.
• 3.Private markets offer income and diversification, but require strict selectivity in direct lending.

What this series covers

• 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

Edition archive

• How to diversify with alternatives en 1662516

  June 29, 2026

• How to diversify with alternatives en 1662120

  June 22, 2026

• How to diversify with alternatives en 1661665

  June 15, 2026

• How to diversify with alternatives en 1661191

  June 8, 2026

• How to diversify with alternatives en 1660791

  June 1, 2026

• How to diversify with alternatives in 2026 en 1659965

  May 19, 2026