What alternatives strategies are private investors backing today?

Rationale for a well-diversified portfolio has never been clearer

Claire Madden, managing partner at Connection Capital LLP, takes a closer look at what private investors are seeking from alternatives after a challenging year.

2022 was a particularly tough year for investors with a traditional 60:40 equity/bond portfolio down as much as 17% (according to Refinitiv Datastream), as equities and bonds plunged. The longstanding asset mix ratio has been under question for some time as performance has showed more correlation (and thus less diversification) than is ideal for those attempting to construct an optimally risk-adjusted portfolio. In tandem, the rise of alternative investments and increased access to these strategies has meant private investors have been allocating an increasing proportion of their portfolio ...