Alternative investments—defined here as hedge funds, hedge funds-of-funds and managed futures funds—cover a broad range of investing strategies and structures that fall outside the boundaries of traditional asset categories such as equities and fixed income (e.g., stocks and bonds). Because alternative investments may not always move in tandem with the equity and fixed-income markets, they can provide diversification properties generally not associated with traditional investments. As a result, they may help: - Enhance portfolio diversification. When alternative investments are used as a strategic adjunct to a traditional diversified portfolio of stocks, bonds and cash, they can help eligible clients achieve broader portfolio diversification as well as potentially create more efficient portfolios owing to low or even negative correlation with traditional assets.
- Produce consistent returns over time. Combining alternative strategies with traditional portfolios has the potential to generate attractive returns over time through a variety of market conditions.
- Preserve wealth over time. Because alternative investments seek low correlation with traditional assets, they may help to preserve wealth when stocks and bonds are out of favor.
About Alternative Investments at UBS A leader in the alternative investments arena, UBS offers high-net-worth, ultra-high-net-worth and institutional investors an array of alternative strategies to help them achieve more efficient diversification within their traditional investment portfolios. The Alternative Investments US team, headquartered in New York City, develops, manages, distributes and services a suite of best-in-class proprietary and third-party alternative investment offerings across a variety of asset classes and investment strategies for domestic and offshore clients. |