03.10.2012 - Alternatives go mainstream
The 2008 financial crisis accomplished in 12 months what I have been trying to do most of my 26-year career: educate investors about the benefits of allocating some of their portfolio to alternative investments, in particular, hedge funds and managed futures. One of the great truisms of investing—“If you lose 50%, you need to make 100% just to get back to even”—goes a long way toward explaining why 2008 was so effective in stirring up interest in alternative investments. Even though hedge funds lost an average 19% that year, their performance was a lot better than S&P 500’s 38% trip south. Some managers within popular hedge fund strategies, like global macro, actually made money. Managed futures turned in a glowing performance, up close to 16%...............................................Full Article: Source
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