Alternative Asset Classes

Using Liquid and Listed Alternatives as Portfolio Tools

New Tools for Portfolio Management and Asset Allocation

In recent years, a variety of new tools have become available, enabling asset allocators and portfolio management to gain exposure to alternative asset classes, without making a longer-term commitment.

These tools can be particularly useful for tactical allocations, for portfolio rebalancing, or to cover variable cash-flows. Below, the Savvy Research team has listed a selection of the ten top white papers.

tools table liquid listed alternatives

Investing in Liquid Alts: An Outcomes-Based Approach (QMA, 2017)
Liquid alternative strategies have emerged as viable and popular investment options. This paper examines how the broad classifications used by retail databases can themselves make it harder for investors to find the best strategies.

The Case for Global Listed Infrastructure (Cohen & Steers, 2017)
This paper by Cohen & Steers examines the listed infrastructure asset class, its historical investment characteristics, and the secular themes driving significant capital formation in infrastructure globally.

Liquid Alternatives to complement a Fixed Income Allocation (UBP, 2017)
The end of 2016 represented a period of transition for global markets and it seems that we are currently in a new paradigm, particularly in the U.S.

The Case for Liquid Alternatives in DC Plans (Neuberger Berman, 2015)
In this 2015 paper by Neuberger Berman, the authors make the case for liquid alternatives. They give an overview of the liquid alts market, which fiduciaries ought to consider before such investments are included in DC plans.

Realizing the Promise of Listed Infrastructure Investments (STOXX, 2017)
Since most investors cannot afford to buy toll roads or airports, unlisted infrastructure investments are out of their reach. This means that listed equity is the only avenue for exposure to this asset class.

Liquid Alternative Investment Maps (Goldman Sachs AM, 2017)
The authors of this paper narrow down the vast universe of liquid alts to the funds that may better provide the differentiated return and risk characteristics of hedge funds.

Listed Real Assets: The "Alternative" Liquid Alts (Cohen & Steers, 2016)
As more investors look to diversify their portfolios with liquid alternatives, this paper explores how listed real assets have historically helped to mitigate risks of traditional stocks and bonds.

Liquid Alternatives in Germany: High Investor Demand (Scope Ratings, 2017)
Scope Analysis surveyed 53 investment companies on liquid alternatives. The results show that around 90% of respondents believe these funds have “very good” or “good” sales potential in 2017.

Liquid Alternative Mutual Funds Versus Hedge Funds (Academic Paper, 2016)
Despite the rapid rise in the number of liquid alt mutual funds, few studies have been conducted into how their return and risk characteristics differ to those of hedge funds. Jonathan Hartley seeks to correct this in this research paper.

An Appraisal of Real Estate Securities for Asset Allocation (GSAM, March 2017)
Today, in recognition of its strong performance and unique investment attributes, real estate is a crucial component of virtually all asset allocation models. This paper examines why the asset class is so important to investors.

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