INVESTMENT PROCESS
Opportunities to Enhance Portfolio
Diversification
Complementing traditional equity and fixed income strategies, our alternatives platform provides access to differentiated investment opportunities through carefully selected managers and funds.
While our Investment Committee focuses on asset allocation, equity, fixed income, and manager/fund research, we also recognize the important role that alternative investments can play in enhancing diversification, generating income, and managing risk.
Alternative Investments can provide protection against volatility, hedge against inflation, and potentially improve the risk-adjusted returns of portfolios through the diversification benefits they provide.
The diversification potential of alternatives can be seen in the lower correlations with traditional investments that many have exhibited historically. Correlation refers to how assets perform relative to one another, with lower correlations leading to more diversification benefits.
The Capital Market Advisors’ investment research team considers real assets, precious metals, venture capital, private credit, private equity, hedge funds, managed futures, and cryptocurrency as options for a potential allocation to alternatives in client portfolios depending on suitability. These solutions are evaluated with the same rigorous due diligence standards that guide all of our investment decisions.
A thoughtful approach to including alternatives in a portfolio can reduce the volatility of returns over time, potentially enhance returns or income, and help improve the probability of achieving an investment goal.
TOP ADVANTAGES OF ALTERNATIVE INVESTMENTS
– Diversification
– Protection Against Volatility
– Inflation Hedge
– Improved Risk-Adjusted Returns
– Higher Potential for Returns or Income
– Increased Probability of Achieving Investment Goals