Yes A checkmark with a circle around it close
Gold compass resting on top of a paper line chart

Alternative Investments – In Depth

A deeper analysis of investment trends and topics across asset classes and global markets.

July 28, 2022

Justin Lenarcic, Lead Wealth Investment Solutions Analyst

James Sweetman, Senior Global Alternative Investments Strategist

Regaining Altitude with Alternatives

Can hedge funds and private capital help reduce an inflationary drag on portfolios?

Key takeaways

  • Inflation creates a “drag” on investment returns by reducing value over time. Central bankers, in their efforts to fight inflation, are removing liquidity and increasing interest rates, reducing the “thrust” that helped lift asset prices in recent years.
  • We believe alternative investments are uniquely positioned to help portfolios regain lost returns, or altitude.
  • We favor Macro and Relative Value strategies as a way to help mitigate the drag of higher inflation and interest rates. As we get closer to recession, we will shift focus to certain Private Capital and Hedge Fund strategies that can potentially benefit from a recovery in the economy and asset prices.