Thematic, systematic, pragmatic: Why multi-strategy investing still has a place in 2021

Flexible approach will take edge off Covid disruption

In a world where traditional asset classes are not offering particularly attractive prospective returns, many argue that investment in alternative assets – such as private equity, high-yield bonds, renewable energy and even cryptocurrencies – has become essential to ensure sufficient portfolio diversification.

While some investors may wish to opt for a single-asset-class strategy, for others, a multi-strategy allocation may be more appropriate. What can a multi-strategy fund offer to a traditional balanced portfolio in terms of enhancing the risk-return outcome for investors? Since the Global Financial Crisis (GFC) of 2007-08, the levels of economic intervention and support by authorities worldwide have been unprecedented, and the stimulus measures have driven bond yields lower and equity prices higher. A whole new world: Market recovery on the way but do not expect a return to the old n...