Tue, Mar 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Trends in alternative investments - First Trust Advisors

Thursday, April 17, 2014

Mark Melin, Opalesque Futures Intelligence, Chicago:

In this interview, Opalesque Futures Intelligence Editor Mark Melin discusses current trends in alternative investing with Rob Guttschow and John Gambla of First Trust Advisors

Mark Melin: Can you just describe the benefits of adding alternative investments to a traditional portfolio?

Rob: Thank you very much Mark. The benefits of investing in alternatives are their ability to potentially enhance the risk-return characteristics of a traditional investment portfolio. First Trust is getting into the alternatives market to offer financial advisors and their clients the tools they need, via the ETF market, to build well diversified high return per unit of risk portfolios. John and I currently manage two ETFs focusing on alternatives and eventually hope to build an entire suite of alternatives to fit a variety of investor needs.

Traditional investments focus on building diversified portfolios of long only stocks, long only bonds and cash. Alternative investments, on the other hand, seek out non-traditional alphas and non-traditional betas seeking to capture returns from these non-traditional sources. Because alternatives are seeking returns in different places and in different ways than traditional portfolios, they often times have low or even negative correlations with stock and bond markets.

Modern portfolio theory says more diversification is generally a good thing. Alternative inve......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner