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Bailey McCann, Opalesque New York:

Financial advisors remain bullish on alternatives despite lackluster performance, according to a new survey from investment firm Altegris. According to survey respondants, 66 percent plan to increase their allocations to alternatives in the remainder of 2015.

On a strategy basis 32 precent ranked managed futures as the top strategy for allocations. Another 28 percent said they would be increasing their allocations to private equity. Wiithin the RIA community, allocation plans were more divided - 45 percent cited managed futures as their strategy of choice, with another 36 percent putting private equity at the top of that list.

When asked how investors are using alternatives in their portfolios, 63 percent noted they use alternatives to complement traditional strategies, 17 percent use alternatives as a substitute for traditional stock strategies, and 15 percent use alternatives to hedge against volatility in the market.

Of particular interest, 60 percent of respondents indicated that clarity regarding investment philosophy/strategy is the most important attribute to choosing an alternative fund. Only 19 percent selected historical returns as most important, 24 percent indicated that lack of clarity regarding investment philosophy/strategy was a major concern regarding investing in alternatives, and 53 percent expressed concerns about fees.

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