Asset Allocation Approaches
An approach to determining the desired allocation to the alternative asset classes is to make the initial asset allocation decision …
alternative investments
The Investment Opportunity Set
Traditional approaches to defining the investment opportunity set include classifying asset groups by liquidity or by how they perform over economic cycles. …
Role of Alternative Investments
Below is a framework for how the common alternative strategies are generally perceived to affect the risk/return profile of a …
Portfolio Contribution of Hedge Fund Strategies
When a 20% allocation to hedge funds is added to a traditional 60% stock/40% bond investment portfolio, the resulting allocation …
Analysis of Hedge Fund Strategies
Following a practice-based risk factor perspective, a conditional linear factor model can be used to uncover and analyze hedge fund …
Multi-manager Strategies
Three main approaches are used to combine individual hedge fund strategies into a portfolio: creating one’s own mix of managers by …
Specialist Strategies
Portfolio managers for specialist hedge fund strategies use their knowledge of a particular market to pursue niche investment opportunities. Volatility Trading Once …
Opportunistic Strategies
Opportunistic hedge fund strategies are a broad class of investing approaches that attempt to extract profits using a wide range of …
Relative Value Strategies
Relative value strategies attempt to exploit valuation differences between securities. The most common securities used in relative value strategies are hybrid …
Event Driven Strategies
Event-driven (ED) hedge fund strategies take positions in corporate securities and derivatives that are attempting to profit from the outcome …