Here is a recap of my posts over the last few weeks about “alternative assets”. The attached article from Wall Street Journal this weekend offers corroboration.
♒ Private Equity: The Tide Has Gone Out ♒
Once heralded for capturing the coveted illiquidity premium, private equity now faces a daunting landscape. With interest rates higher and an overabundance of capital chasing a limited pool of viable deals, investors must brace for underwhelming performance in the near future.
https://lnkd.in/g-ztBjUr
👑 Hedge Funds: The Emperor Has No Clothes 👑
In stark contrast to private equity, hedge funds have long lacked a solid theoretical foundation for capturing inefficiencies like the illiquidity premium. The harsh truth is becoming evident: these funds often benefit their sponsors far more than their investors.
https://lnkd.in/gxPstxpR
🏠 Private Real Estate: It. Is. Illiquid. Period. 🏠
As a legitimate asset class, private real estate has substantial value. However, the so-called liquidity of its open-end variety is often nothing more than an illusion.
https://lnkd.in/gUTjWDts
⛽ Commodities: Insights and Challenges ⛽
The low correlation benefit of commodities is real. However, implementation costs using futures are high, offsetting the advantage of the low correlation.
https://lnkd.in/g6CuVK52
💲 Inflation-Linked Bonds: A Hidden Gem 💲
Often overlooked and underrepresented in alternative asset discussions, inflation-linked bonds are a hidden treasure. Offering low correlation, a robust hedge against inflation, and minimal investment costs, these bonds deserve a more prominent place.
https://lnkd.in/g8RXq7Wa