Modern Portfolios
Diversify with alternative strategies.
Historically, investors could depend on a traditional 60/40 portfolio for diversification. Today, changing policies and macro dynamics have shown us that traditional asset classes are no longer enough. To provide the robustness needed, we believe alternative strategies should be incorporated to navigate through these new uncertainties.
A well-constructed portfolio that combines alternative investments and traditional investments is designed to mitigate volatility while striving to outperform over time.
Demystifying Alternatives
Investors are increasingly turning to alternative strategies to reduce portfolio volatility and drive absolute returns. Still, many have outstanding questions. Download our guide to learn more about how AlphaCore helps our clients utilize these strategies.
Alternative investments are considered complex products and may not be suitable for all investors. Prospective investors should be aware that an investing in an alternative investment is speculative and involves a high degree of risk. Alternative investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; are volatile; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.
Securities such as closed end funds, hedge funds, private equity and venture capital funds, commodity pools and other alternative investments involve a high degree of risk and can be illiquid due to restrictions on transfer and lack of a secondary trading market. Alternative investments may be subject to higher fees and expenses, and may lack transparency as to share price, valuation and portfolio holdings. Complex tax structures often result in delayed tax reporting. Alternative investment managers typically exercise broad investment discretion and may apply similar strategies across multiple investment vehicles, resulting in less diversification. Trading may occur outside the United States which may pose greater risks than trading on U.S. exchanges and in U.S. markets.
Win More by Losing Less
The “core” in our investment philosophy is alpha-driven rather than beta-driven. Learn more about this important distinction in this paper.
