Gsam’s papagiannis on liquid alternatives finalternatives electricity kwh

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Editor’s Note: The popularity of liquid alternatives strategies has blossomed in recent years, and with it, the number of investment vehicles claiming to be part of the asset class. But not all liquid alternatives are true hedge fund proxies, and misconceptions exist about strategy classification. FINalternatives managing editor a gas is compressed at a constant pressure of Steven Lord caught up with Nadia Papagiannis, Director of Alternative Investment Strategy for Goldman Sachs Asset Management’s Global Third Party Distribution, to explain.

Nadia Papagiannis: We have a rich history of managing alternative strategies, and today we are one of the largest alternatives managers in the world. We also have a sizeable traditional mutual fund business. So it’s no surprise, then, that we were one of the first entrants into the liquid alternatives space in 2008, with our absolute return tracker strategy. We launched a multi-manager alternative strategy in 2013, and we now offer a range of liquid alternative strategies globally.

We have made a big investment in liquid alternatives because we really believe gas cap code in it. We believe that investors need ways to achieve their financial goals other than stocks and bonds, especially in today’s environment of increased volatility, low interest rates and lower expected growth. While institutions and high-net-worth investors have been able to access alternative investments to help achieve their investment gaston yla agrupacion santa fe 2016 objectives, retail clients haven’t had the same opportunities until more recently.

The liquid alternative investment (LAI) peer groups covered in the MAPS serve two important purposes: One is to aid portfolio construction. To arrive at a strategic, diversified alternatives allocation, an advisor might select a couple of managers from each of the four single strategy LAI peer groups, or pick one gas mask bong review or two managers from the multi-strategy peer group, which contains funds that are already more diversified. The second purpose of the LAI peer groups is better benchmarking. Funds in the same peer group should show similarities to each other and to their benchmarks. Hedge fund benchmarks have histories going back to 1990, through many different types of market environments. Because alternative mutual funds’ strategies generally aim to mimic those used in hedge funds, it makes sense to group [similar strategies together].

Our MAPS analysis highlights that, in 2015, liquid alternative funds performed comparably to their hedge fund counterparts in every LAI peer group. Over longer periods of time, however, we have seen certain liquid alternative peer groups perform similarly to or better gas tax oregon than hedge funds, while others have underperformed relative to hedge funds. The difference between the returns of liquid alternative funds and hedge electricity voltage in china funds with similar strategies can be caused by any one of a number of factors, including differences in fees, the liquidity of underlying investments and the use of leverage.

Alternatives generally demonstrate wider performance dispersion, or range of returns, relative to traditional asset classes. Last year, in particular, we saw exceptionally wide dispersion in hedge funds and alternative mutual funds as the result of higher volatility in virtually all risk (non-Treasury) asset classes, especially in the third and fourth quarters. Because alternative strategies are more actively managed and gas bubbler don’t track traditional market indices, increased volatility can lead to more long and short opportunities for alternative managers. Some get it right, and some don’t. That’s why it’s particularly important to diversify across alternative managers.

This is a common misconception. While many alternative mutual funds offer investors hedge fund-like strategies, they are not private placement hedge funds in a mutual fund wrapper. There are certain illiquid strategies offered as privately placed hedge funds that cannot be offered as mutual funds, precisely because the underlying assets are too levered or too illiquid. Alternative mutual funds principally trade in liquid securities and instruments and b games basketball cannot use as much leverage as a traditional hedge fund, due to regulatory constraints. In our MAPS analysis, we demonstrate that equity long/short, managed futures and global macro (collectively, tactical trading/macro), and multi-strategy have translated particularly well.

Other strategies, which in their hedge fund form utilize less-liquid instruments or higher leverage, are either not suitable to be managed in a daily liquid mutual fund format, or they need to be significantly adjusted to meet mutual fund requirements. We believe that this is why, in our MAPS analysis, we see event-driven and relative-value alternative mutual funds underperform their hedge fund electricity cost calculator counterparts over longer periods of time. That said, it is also possible that the underperformance in these two LAI peer groups could also be driven by a dearth of good managers in the space; they are by far the smallest categories.

Multi-manager alternative mutual funds are effectively the liquid alternative equivalent to funds of hedge funds. They attempt to provide investors with manager selection, portfolio construction, and risk management in a turn-key solution. We believe these are great options for many investors electricity bill nye worksheet as they provide diversified liquid alternatives exposure. Additionally, there are single-manager multi-strategy alternative mutual funds that attempt to provide hedge fund “asset class” exposure at a lower cost. Because many advisors don’t have the resources or expertise to allocate gas bloating frequent urination to a diversified group of individual alternative mutual funds, and because diversification is particularly important with alternatives, which have experienced wide performance dispersion, we think multi-strategy and multi-manager funds, specifically, will always be a large percentage of the alternative mutual fund assets.

Last year did see a deceleration in liquid alternative growth. But importantly, it saw greater growth vs. traditional mutual fund asset classes, which saw significant outflows. We expect this slow, positive growth trajectory to continue with alternatives. Instead of “saturation,” I would 10 gases call it “maturation.” We believe advisors are learning that they need to take a thoughtful, educated approach to investing in liquid alternatives.

The goal of alternatives, as with other risk assets, is to generate positive returns over time, but not all assets are going to generate positive returns at the same time. That is why we recommend diversification, so hopefully something is working at any point in time. For the same reason investors diversify stocks with bonds, we suggest diversifying stocks and bonds with alternatives.

Yes, we believe electricity physics ppt that over the next several years as advisors and investors become more comfortable with liquid alternatives, and as the quality of offerings continues to expand, we will not be talking about liquid alternatives as a new concept, but as part of a core allocation. I don’t see any significant downside to this evolution. There is a reason why institutions and high net worth investors have allocated to alternative investments for decades. Historically, they’ve worked.

The European market is quite different from the U.S. market, and can vary from jurisdiction la gasolina cancion to jurisdiction. Investors in some countries or regions seem to be reticent to move beyond traditional fixed income strategies, whereas others are more open to less-traditional investments, and have been allocating to liquid alternatives for longer than U.S. investors.