Alternative Allocation Strategies
Given turbulent and increasingly correlated equity markets, many investors are looking for alternative investments for enhanced diversification and portfolio returns. Incorporating alternative investments into an asset allocation policy provides a number of challenges that conventional portfolio management techniques do not take into consideration.
Mesirow Financial Investment Strategies has developed an alternatives optimization procedure that does not rely on some of the key assumptions that limit the usefulness traditional methods when dealing with alternatives. By utilizing this new optimization process, we're able to incorporate a number of different alternative asset classes and investment strategies (such as managed futures, commodities, absolute return strategies, and other exotic asset classes) into an overall portfolio. The result is a portfolio mix that provides exposure to alternative asset classes in a statistically robust fashion.