Not only can they provide some downside protection, but they can also offer the possibility of low-risk sources of return.
Alternatives: Can managed futures offer diversification? – (Fund Strategy)
The risk-parity funds can be viewed as an alternative to balanced funds, which typically invest 60% of their assets in stocks and 40% in bonds.
Are Risk-Parity Funds a Better Strategy for Diversification? – (Wall Street Journal)
Hedge fund managers are beginning to explore non-traditional financing sources outside of prime brokers. Thirteen percent of respondents are seeking or plan to seek financing from non-traditional sources in the next two years,”
EY Survey: Hedge Funds Facing Margin Pressure, Regulatory Changes & Shifts in Growth Strategies – (FIN alternatives)
Does this mean that you’re guaranteed to earn a certain level of returns in stocks if you hold them for a specified time frame? No.
Playing the Probabilities – (A Wealth of Common Sense)
The problem is the companies were banking on oil prices closer to $100 oil when they took on the debt. Now oil is around $45 and no one is expecting prices to hit $100 any time soon.
What that means is the likelihood of unpaid debt has gone up for many companies.
Warning: Oil company defaults are coming – (CNN Money)
Raw Sugar Prices are up 39% since August 24th, the markets largest gain since 2011.
Hedge Funds Load Up on Sugar – (Wall Street Journal)
How low will Silver have to go before sentiment turns so bad, that its actually good?
Silver’s Sharp Sell Off – (Short Side of the Long)
Besides contending that hedge funds provide outsize returns, their supporters say the funds have another big selling point: Their returns are not correlated to the stock market. That means they move independently of the market when it goes up and down.
A Hedge Fund Sales Pitch Casts a Spell on Public Pensions – (The New York Times)