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| Alternatives |
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Recently, alternative asset classes such as hedge funds, asset-backed
securities, and private equity have taken on much greater significance.
For instance, the global hedge fund market has achieved annual growth
rates of around 20% over the last four years, with over a trillion
dollars currently invested. One of the main reasons for this development
is certainly the lack of sufficient profitability in traditional investment
classes such as bonds.
When investing in alternative asset classes, issues such as transparency,
the use of alternative asset classes in strategic asset allocation,
and adequate risk management play a central role. Typical questions
on these topics are:
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Does the addition
of alternative investments make a positive contribution to the overall
portfolio? |
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What are the benefits
and risks of investing in alternatives? |
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What is the optimal
allocation to alternative asset classes in the overall portfolio? |
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What would be an optimum
allocation in terms of the different alternative asset classes? |
Because alternatives offer features that are different from traditional
asset classes (e.g. returns are not normally distributed), employing
traditional portfolio analysis tools (such as mean-variance optimization)
is suitable only under very limited circumstances. Therefore, within
our "Alternatives" Competence Center, we have developed
modeling approaches that account for the specific characteristics
of alternative asset classes. These approaches will provide you with
the transparency you need for a well-founded investment decision,
whether on an individual basis or in the portfolio context.
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