Updated Monday, December 29, 2014 as of 1:44 AM ET

How to Benchmark Alternatives

Benchmarking alternatives isn't easy, but it's critical in making sure clients and advisors are clear on the investments' role in the portfolio. Here's how to benchmark private equity, non-traditional bonds and long-short funds.

Get access to this article and thousands more...

All On Wall Street articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.

Already Registered?

Comments (1)
A long-short portfolio that is 60% long and 40% short is actually 80% in cash. Here's how it works. You give me $1. I use it as collateral to short 40 cents worth of stock. The proceeds from that short sale are used to buy 40 cents worth of other stock, plus I use another 20 cents of that dollar you gave me, so I have 60 cents in the long stocks, and I'm left with 80 cents in cash.
Posted by Ron S | Monday, June 23 2014 at 2:57PM ET
Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

Already a subscriber? Log in here