All these funds attempt to reduce the risk of underperformance by diversifying across multiple 'factors,' but there are important differences among them.
A solution in search of a problem?
More alternative asset managers are considering funds of hedge funds, but investors should keep in mind these portfolios' short track records.
Running global macro strategies, Bronze-rated UBS Dynamic Alpha and MFS Global Alternative Strategies have benefited from currency and equity market volatility.
Correlation to stocks and bonds varies depending on the strategy used.
Interest-rate fears and potential tapering of the Fed's bond buys could put these diversifying offerings on investors' radars.
Gratus Capital Management is an SEC registered investment advisor. Our ADV documents are available upon request. The opinions expressed are as of the pubication date and may change as market conditions vary. As with any investment, past performance is not a guarantee of future results.
Everyday investors will not wish to copy the famed pension funds, but they can pick up some tips.
But passive equity and alternative strategies continue to draw interest.
Characteristics inherent in ESG could give investors an edge.