Sun, Jun 24, 2018
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. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  2. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  3. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a

  4. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv

  5. British Empire: Pershing's 23% discount 'unsustainable'[more]

    From Citywire: The wide discount on Pershing Square Holdings (PSH) is 'unsustainable' and puts star hedge fund manager Bill Ackman under pressure, says British Empire (BTEM). Pershing is the third largest holding in the £850 million British Empire trust, managed by Joe Bauernfreund, which sp