Alternative investments during recession

Insights on the alternative investment strategies in the down market from the industry veteran: asset allocation, liquidity and due diligence of the private market alternatives

  • The alternative investment allocation should be increased during recession
  • Having liquid assets in the portfolio can be advantageous in the down market
  • Liquidity is a double edge sword. In the highly volatile market liquidity may harm the investor
  • For the long term investors, the main concern should be return and liquidity of the alternative investments are highly beneficial in that regard
  • Alternative investment class is very diverse and each subcategory should be approached individually with the involvement of subject matter experts
  • In the previous downturns infrastructure and energy played well and provided inflation hedge
  • Gut feeling is important for the experienced investment manager to select the opportunities during downturn