Оглавление
Rabe Jessica Lynn. Alts Democratized
Foreword
Acknowledgments
Introduction
Chapter 1. Definitions and Methodology
Definitions
Lipper Classifications
The Future
Methodology
Guide to Chapters 3 through 13
Summary
Chapter 2. Road Map for the Liquid Alts Space
Liquid Alts in Context
Assets and Net Flows
IPOs and Liquidations
Risk and Return
Summary
Questions
Chapter 3. Absolute Return Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
References
Chapter 4. Alternative Active Extension Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
Chapter 5. Alternative Credit Focus Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
References
Chapter 6. Alternative Currency Strategies Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
Reference
Chapter 7. Alternative Equity Market Neutral Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
Chapter 8. Alternative Event-Driven Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
Chapter 9. Alternative Global Macro Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
Chapter 10. Alternative Long/Short Equity Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
Chapter 11. Alternative Managed Futures Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
Chapter 12. Alternative Multi-Strategy Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
Chapter 13. Dedicated Short Bias Funds
Definition
Total Net Assets and Net Flows
Risk and Return
Factor Exposures
Asset Allocation and Fund Selection
Top Ten Funds
Blockbuster and Spotlight
Summary
Problems
Chapter 14. Lipper Alternative Classifications Summary
Lipper Alternative Classification Roles
Absolute Return Funds
Alternative Active Extension Funds
Alternative Credit Focus Funds
Alternative Currency Strategies Funds
Alternative Equity Market Neutral Funds
Alternative Event Driven Funds
Alternative Global Macro Funds
Alternative Long/Short Equity Funds
Alternative Managed Futures Funds
Alternative Multi-Strategy Funds
Dedicated Short Bias Funds
Chapter 15. Portfolio Construction
Holistic and Goals-Based
Macro Environment
Correlations Converge
Evolution of Investment Management after the Crash
Core/Satellite Investing
Micro-Endowment Model
Summary
Questions
Chapter 16. Volatility Management
How Volatility Drag Reduces Compound Returns
Talking Points for Clients
Behavioral Discipline
Summary
Chapter 17. Suitability and Fees
Suitability and Results
Interviews
Fees
Summary
Questions
Chapter 18. Fund Selection
Five Key Roles
General Tips about Fund Selection
Summary
Chapter 19. Interviews
Stephen Horan
Roger Paradiso
Daryl Dewbrey
Daniel Egan
Conclusion
About the Companion Website
About the Authors
WILEY END USER LICENSE AGREEMENT
Отрывок из книги
So you've taken the plunge to learn more about alternative funds, or alts. No doubt you feel compelled in some way to find out more about these fascinating and oft-talked-about investments, and you're ready to jump in and start – or maybe not. Maybe you just want a better understanding of the unknown before you find one popping up or, worse yet, blowing up in your portfolio. Let's take a quick look at the potential reasons why you bought this book and now find yourself reading this Foreword:
All these or any combinations thereof are excellent reasons to read this book. Why am I writing the Foreword, you ask? I will tell you, of course, and I think you'll find my rationale strikes a similar theme across many of the aforementioned scenarios. Like many of you, I lived through the financial crisis of 2008. I also lived through the tech bubble meltdown of 2001 and every other market downdraft dating back to 1987. That doesn't make me either a dinosaur or a neophyte, but it does make me aware of the fact that dynamics in the market have changed over time and the tools used by investors to weather such storms have had varying degrees of success and seemingly less efficacy with each new episode. Time-tested adages such as building diversified portfolios with underlying holdings that zig while others zag have fallen short. And it's not just that market dynamics seem to have evolved over the years; it's also the degree of urgency placed on those in the position of building portfolios to get it right and limit losses.
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The MEM therefore sports an alternative tilt that is more reasonable for individual investors, providing the portfolio with potential for enhanced returns and alpha generation from a number of sources: diversification through noncorrelation, directional bets, hedging of tail risks, active management of credit and duration risks, and preservation of capital using nontraditional assets. The MEM may not be suitable for all clients, but we describe it as a tool that may help the portfolio construction process.
Bear in mind that the MEM assumes a core/satellite approach, which blends passive and active funds and helps separate beta from alpha. This process can enable customization by focusing the satellite of the portfolio on specific client needs. Meanwhile it limits costs by using passive funds in the core for beta exposure to equity, fixed income, real assets, and certain alternative assets. The customization facilitated by the core/satellite approach helps advisors adapt to the changes in portfolio construction that we outline in Figure 15.2: Rather than targeting a benchmark and sticking with a buy-and-hold strategy, many advisors now use both strategic and tactical approaches to meet client goals.
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