Other Alternative Investments - Articles & White Papers
Articles and research on other alternative asset classes (those outside of mainstream alternatives). Some alternatives within this section are insurance-related, so there are a number of white papers on catastrophe bonds, reports on reinsurance securities, and securities backed by life settlements (secondary market for life insurance policies). Is volatility an asset class? This is debatable, but we have included in this section papers on volatility as an asset class or "opportunity class", including the use of short volatility to enhance portfolio returns. Master Limited Partnerships are another, relatively new alternative asset, and our listing includes white papers on MLPs, which provide relatively high income with stable cash flows. Other exotic alternatives include institutional investment in wine and institutional investment in art, with one paper examining the characteristics of art funds and their typical investments, while another examines the history of bubbles in the art market. PwC author a report on alternative investment asset classes which considers oil and gas MLPs and insurance flavored products, among others.
As more investors seek new sources of returns less correlated with the downward swings of the equity and bond markets, liquid alternative strategies have emerged as one of the more viable, and popular, investment options. Investors and their financial advisors are conditioned to select managers based on the asset class they invest in, frequently a less important consideration when ...
Find out the latest on your peers’ appetite for private equity, venture capital, hedge funds, real estate, infrastructure, private debt and natural resources in the Preqin Investor Outlook: Alternative Assets, H1 2018. Featuring the findings of extensive surveys with 550 institutional investors, the report examines investor activity and challenges in 2018, levels of ...
As the investment industry environment transforms faster than ever before, alternative asset managers’ ability to adapt their business models is being tested in the extreme. Institutional investors now outweigh high-net-worth individuals as a source of hedge fund capital, and they continue to grow their allocations in other unlisted assets. This influx of institutional money, ...
Macro investors adopt a top-down view of the world in which they analyze broad trends to allocate risk across asset classes, geographies, sectors, and currencies—resulting in a liquid strategy that aims to deliver strong risk-adjusted returns without having to rely on rising equity or bond markets. In this paper, William Blair's Dynamic Allocation Strategies team ...
This 2012 paper asks if the art and science of investment management can be reduced to a set of patterns that markets generally follow, in apparent violation of the efficient market hypothesis. Can investors reasonably expect to make money from the knowledge of these patterns, even after they have not only been identified but also widely exploited? Although one’s first ...
This paper explores liquid alternative strategies and how to implement them in portfolios whilst facing a complex set of challenges such as return and fees profiles and risk.
As a response to the current low rate environment, fund managers are exploring new opportunities in previously untried asset classes in search of greater yields. In response to this trend, PwC hosted a webcast discussion to provide insights into market activity within specific alternative asset classes. It included an analysis of the pros and cons of each asset class, structuring ...
This paper provides a framework for the selling of volatility on a broad equity index (large-cap US stocks particularly) in order to increase risk-adjusted returns.
Deloitte delves into the global art market, discussing the market's outlook, how art fits into the wealth management picture, the art-secured lending market, and the intersection of art and technology.
Although nontraditional asset classes at times have underperformed equities and may cost more than strategies that include only traditional assets, there are many reasons why institutional investors should consider alternative assets.
Over the last two decades, distressed debt investing has risen in popularity. The market has increased in size with PE firms and hedge funds becoming key players. This paper provides a helpful overview of the asset class.
Income provided by traditional assets is inadequate. As a result, alternative sources of inflation-linked income are needed. Duncan Hale of Willis Towers Watson makes the case for pension fund investment in real assets to improve the health of cash flows.
Alternative Risk Premia (ARP) strategies have risen to prominence in recent years, fuelled by investors' desire for diversification and a better understanding over what should be labelled as "alpha" and "beta". The authors of this paper believe that these strategies can aid diversification within a portfolio and allow investors access to sources of return ...
This report by Deloitte provides interesting insights into the growing Art and Finance industry. The paper highlights the main trends and developments, but also seeks to capture and measure the changing perceptions and motivations among investors.
This paper explains the main characteristics of catastrophe bonds (CAT bonds). A reinsurer issues CAT bonds for indemnification against tail risks of major disasters such as hurricanes, earthquakes, or pandemics. The money used to acquire CAT bonds is placed in securities considered safe, such as United States Treasuries. The investor will then receive interest on these securities ...
With interest rates close to zero in major economies, and large-scale QE having taken place in many regions, investors are in uncharted territory. In an environment where the long-term economic outlook is uncertain, many investor may wish to protect their capital against the risk of unexpected inflation or consequent changes in the level of interest rates. One ...
Bitcoin and other cryptotokens have captivated a large segment of the retail investment world in ways not seen since the dotcom bubble of 1998-2000. It is undoubtedly a speculative bubble. Yet most speculative bubbles have something real and potentially transformative underpinning them.
Blockchain could facilitate secure decentralised transactions, reduce incidents of fraud, and increase transparency and efficiency in multi-party transactions. The real-world applications span a cross-section of markets and industries including travel, energy and real estate, as well as finance. This paper introduces blockchain and its relevance to responsible investors.
