Alternative Investment Strategies
During the portfolio design and implementation processes it is important to evaluate the use of investments that have a low correlation with the markets and with other holdings in a portfolio. These investments can take many forms but the key to effective use is to identify investments that are expected to perform well but that are not impacted the same way as other holdings by economic trends and other factors. This would help the long-term performance of the portfolio while at the same time reducing the volatility and the risk of loss. The two main categories of alternative strategies that we use where appropriate are market neutral investments and covered call positions.