A survey of 55 investment consultants handling $10.4 trillion of assets under management was conducted by Casey Quirk and eVestment Alliance. One of the conclusions was that alternative assets would become part of the mainstream of a portfolio - an idea recently presented by Mark Yusko of Morgan Creek Capital Management. Instead of being in a separate alternatives bucket, they would part of an asset class. The investor allocation asset classes will be: illiquid investments, liquid alpha, real assets, equity, fixed income and cash.
According to the survey, the buyside will have to adapt. The firms that bring the most value to their clients would have non-correlated investments, both traditional and alternative funds and a robust innovation/product development pipeline. Looking at Quirk's chart, hedge funds, fund of funds, emerging markets equity and real estate are poised to grow in 2011. Direct investment in hedge funds is favored by large institutions. Smaller investors use fund of funds.
The source for this article is Simon Kerr's Hedge Fund blog, a blog that I have referred to in past articles.
Hi Friends,
ReplyDeleteNice information! An alternative investment is an investment product other than traditional investments such as stocks, bonds or cash. It is useful for diversifying an investment portfolio and lowering the risk profile. Thanks a lot.