top of page

10 Reasons for Liquid Alternative Investments

Cash and Returns

Alpha generation targets significant additional returns above negative cash (annualised target returns 3-5%).

Positive Returns Throughout Rising and Falling Markets

Protect capital through hedging and short alpha positioning, achieving market neutrality. 

Reduce Overall Portfolio Risk and Volatility

Seek differentiating stream of returns. leading to low correlation with other asset classes. Reduced volatility increases the risk adjusted return profile.

Gains Access to Best Minds in Investment

Manager's skills come with constraints such as capacity, and managers seek to protect capital in the short term.

Alignment of Interests

Internal Manager Capital and strong conviction align managers and institutional investors with the additional risk needed to achieve superior returns.

No Illiquidity Premium

Liquid strategies with the right scalability and appropriate investment vehicle offer appropriate liquidity required by the investors. However, one should invest across the market cycle, for a minimum of 3 to 5 years, and resist unwelcome freedom that liquidity brings. Knowing what is in the portfolio helps to make this decision.

AIFs via Managed Accounts Give Control of Assets

AIFs bring otherwise offshore strategies (with Board of Directors appointed by the Fund Manager) into regulated vehicles (with an independent Board of Directors). 

AIFs via Managed Accounts: You Know What is in Your Portfolio

Complete portfolio transparency at the position level, allowing for full monitoring, risk management and regulatory compliance. 

Up to Daily Valuation

No pricing opacity, limiting valuation risks and achieving 'true' liquidity.

AIFs via Managed Accounts Allow Enhanced Solvency Ratios and ESG Compliance

Market neutrality aspects help reduce solvency capital requirements of insurance companies. Portfolio transparency allows for application of various ESG reporting and internal adherence to ESG policies. 

bottom of page