Updated Thursday, August 21, 2014 as of 6:00 PM ET

The Rapid Rise of Alts

Most alternative investment assets are held by institutional investors or by accredited, high-net-worth individuals and, according to Preqin, now total $6 trillion. Alternative investments include hedge funds, managed futures, real estate, commodities and derivatives contracts.

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Comments (6)
Having a low correlation between two investments does NOT mean one will zag when the other is zigging. Could just as easily happen as not happen, when the correlationship is zero. Few exist at that level. Most have some to still quite bit of positive correlation, which means their tendency is to move similarly but not exactly the same. Alts can be very beneficial for a portfolio, but don't falsely promise their relationships.
Norm Boone
Posted by NORMAN | Sunday, June 01 2014 at 2:33PM ET
Having a low correlation between two investments does NOT mean one will zag when the other is zigging. Could just as easily happen as not happen, when the correlationship is zero. Few exist at that level. Most have some to still quite bit of positive correlation, which means their tendency is to move similarly but not exactly the same. Alts can be very beneficial for a portfolio, but don't falsely promise their relationships.
Norm Boone
Posted by NORMAN | Sunday, June 01 2014 at 2:33PM ET
Having a low correlation between two investments does NOT mean one will zag when the other is zigging. Could just as easily happen as not happen, when the correlationship is zero. Few exist at that level. Most have some to still quite bit of positive correlation, which means their tendency is to move similarly but not exactly the same. Alts can be very beneficial for a portfolio, but don't falsely promise their relationships.
Norm Boone
Posted by NORMAN | Sunday, June 01 2014 at 2:33PM ET
Having a low correlation between two investments does NOT mean one will zag when the other is zigging. Could just as easily happen as not happen, when the correlationship is zero. Few exist at that level. Most have some to still quite bit of positive correlation, which means their tendency is to move similarly but not exactly the same. Alts can be very beneficial for a portfolio, but don't falsely promise their relationships.
Norm Boone
Posted by NORMAN | Sunday, June 01 2014 at 2:33PM ET
Having a low correlation between two investments does NOT mean one will zag when the other is zigging. Could just as easily happen as not happen, when the correlationship is zero. Few exist at that level. Most have some to still quite bit of positive correlation, which means their tendency is to move similarly but not exactly the same. Alts can be very beneficial for a portfolio, but don't falsely promise their relationships.
Norm Boone
Posted by NORMAN | Sunday, June 01 2014 at 2:33PM ET
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