Alternative Strategies
For Managing Risk.
The term “alternative investment” generally refers to any investment in which performance does not depend on continued upward movement in the stock market.*
Strategies for Success
The individual investor vs. the institutional investor.
|
Individual Investor |
Institutional Investor |
|
No patience |
Longer time horizon for investments |
|
Chasing performance |
Broadly diversified |
|
No strategy |
Written investment strategy |
|
Emotions |
Action based on discipline |
|
Lack of risk management |
Uses risk controls |
The Institutional Difference
- More diversified than average individual investor
- Historically, have allocated to international strategies to lower volatility
- Increasingly allocating to alternative strategies to lower volatility and improve consistency of returns
By adding a strategic mix of lower-correlating asset classes to your core portfolio, you can potentially boost your diversification significantly, increase your growth potential and reduce risk over time.
* Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.