Alternative investments during recession
- Dec 15
- Written By Adeleine Whitten
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
