Liquid Alternatives and Absolute Return Strategies
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This module examines liquid alternatives and absolute return strategies and their role in portfolio construction. Panelists explain how liquid alternatives differ from direct private investments and evergreen structures, and discuss their objectives, including alpha generation, diversification, and downside protection. The session also addresses portable alpha concepts, capital efficiency, and key risks such as fees, liquidity, and lockup considerations, providing advisors with a framework for evaluating these strategies.
Speakers:
- Michael Sager, Managing Director & Chief Investment Officer of Multi-Asset & Currency Management at CIBC Global Asset Management
- Giuseppe Pietrantonio, Director and Vice President of Currency & Multi-Asset Solutions for CIBC Global Asset Management
Discussion Points:
- Defining Liquid Alternatives and Their Role in Portfolios
- Types of Liquid Alternative Strategies
- Portfolio Construction: Diversification and Risk Factors
- Managing Market Beta and Idiosyncratic Returns
- Process and Fundamentals in Liquid Alts Strategies
- Risk Management and Drawdown Controls
- Return Expectations and Performance Considerations
- Portfolio Allocation to Liquid Alternatives
- Regulatory Changes and Increased Access to Liquid Alts
- Key Distinctions: Transparency, Liquidity, and Fees
- Holding Periods, Commitment, and Asset Allocation Review
- Due Diligence, Multi-Strategy Approaches, and Portfolio Management
- The Evolution to Multi-Strategy and Technology’s Role
- Complementarity of Liquid Alts and Private Markets
- Final Thoughts and Guidance for Investors and Advisors
