Fri, Nov 24, 2017
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. Tourbillon Capital, a $3.4bn hedge fund that's been sounding the alarm about 'frothy speculation,' is suffering big losses[more]

    From Businessinsider.com: Tourbillon Capital, a $3.4 billion hedge fund firm led by Jason Karp, is suffering. The firm's flagship Global Master fund is down 3.5% for the first 17 days of November, bringing performance for the year to November 17 to a loss of 10.6%, according to a note to investors s

  2. Fund Profile - The Tiger of Silicon Valley: Glen Kacher's sizzling hedge fund[more]

    From Forbes.com: When you live and work in a town where the median home costs $2.7 million and hobnob with the executives of billionaire factories like Facebook and Tesla, it's easy to see why you might think technology stocks are invincible. So far in 2017, the Nasdaq Composite index has gained 25%

  3. Launches - Asset manager launches Europe's first bitcoin mutual fund, Prime Capital Aviation Debt Fund enables aviation debt investments for institutional investors[more]

    Asset manager launches Europe's first bitcoin mutual fund From Coindesk.com: A French asset manager has announced the launch of Europe's first mutual fund centered around bitcoin. Announced today, Tobam's alternative investment fund perhaps represents the latest bid to attract institutio

  4. Legal - Consumers say hedge fund financed illegal tribal lending, New York's highest court permits shareholder of a Cayman-incorporated company to bypass Cayman law and bring derivative action in New York[more]

    Consumers say hedge fund financed illegal tribal lending From Law360.com: Vermont residents on Tuesday hit a hedge fund with a proposed class action in federal court alleging it helped concoct a sham tribal payday lending scheme meant to skirt laws preventing companies from charging cons

  5. Investing - Tech still hedge funds' sweetheart sector: Goldman Sachs, Hedge funds haven't been this leveraged to buy stocks since the bull market began, Top financials hedge fund details short bet against Morningstar, Fund CRC presents an offer for Carige's consumer credit unit, Hedge funds sell shares in Altice USA after difficult quarter[more]

    Tech still hedge funds' sweetheart sector: Goldman Sachs From Reuters.com: Tech stocks remain the largest net sector exposure for equity hedge funds, which are set to deliver their strongest returns since 2013, Goldman Sachs said on Wednesday in a note on the industry's most and l