DESIGNING & OFFERING
ALTERNATIVE INVESTMENT STRATEGIES
THAT WORK

DESIGNING & OFFERING

ALTERNATIVE INVESTMENT STRATEGIES

THAT WORK

STABLE RETURNS

The track records of our alternative funds speak for themselves and leverage opportunities on current trends in the credit & real estate markets.

DIVERSIFIED PORTFOLIO

Reduce the volatility of your financial portfolio and hedge against market fluctuations with our alternative investment funds.

OUR COMMITMENT

Each of our strategies has been developed with our own assets before we propose it to you. We stay invested in each of our funds, by your side.

Contact us to discuss how our strategies can improve the returns, sharpe ratio and volatility of your portfolio.

Alternative investments often exhibit these principal characteristics:
Diversification into assets or geographies not accessible via traditional asset classes.
Historically low to moderate correlation of returns to traditional investments.
Help reduce overall portfolio volatility within a portfolio of traditional investments.
Potential to provide attractive risk-adjusted returns.
Increased investment flexibility.
Alternative Investments
Absolute performance objective
May use leverage
Performance dependent primarily on the alternative investment manager’s skill
Historically low to moderate correlation with market indexes
Typically have reduced liquidity ranging from monthly to 12+ year lockups
Generally higher fees, which may include performance fees
Traditional Investments
Relative performance objective
Limited or no leverage
Performance dependent primarily on market returns
Historically high correlation with market indexes
Typically offer daily liquidity
No performance fees, but may include fixed fees for professional management
Incorporating alternative investments into a traditional portfolio may help you to :
Increase the overall return of your portfolio
reduce overall volatility while increasing portfolio diversification, all with a typically lower correlation to the market movements of traditional investments such as stocks and bonds

For example, replacing 20% of a traditional portfolio (invested 60% stocks and 40% in fixed income) with a mix of alternative products reduces volatility and increases returns, as visualized in this chart:

This chart shows the “efficient frontier” which plots risk (volatility) on the x-axis against return on the y-axis.  An allocation to alternative investment strategies has historically increased returns without an increase in volatility.

Blackrock and Dr. Christopher Geczy, Academic Director of the Wharton Wealth Management Initiative & Adjunct Associate Professor of Finance at The Wharton School, studied the effect of a 15% allocation to alternative investments over the 2000-2014 period. They came to the same conclusion : alternative investment strategies could contribute to increase portfolio return while decreasing volatility.
The short answer is no. An allocation to alternatives is recommended to complement a portfolio invested in traditional asset classes (such as stocks and bonds). Recommended allocations to alternative investments for accredited investors generally range from 5% to 50%, depending mostly on the size of your portfolio, your personal situation, time horizon and financial objectives.
Large endowments such as Yale and Harvard have long adopted and perfected this model. Their long-term horizon and lower liquidity requirements enabled them to increase their percentage allocations to alternative investment. More that three quarters of the Yale endowment is allocated to alternative investments.