Four Takeaways On Alternative Opportunities Today

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Four Takeaways On Alternative Opportunities Today

Four Takeaways On Alternative Opportunities Today by Marc Gamsin, Greg Outcalt, AllinaceBernstein

Dispersion among asset classes and individual stocks and bonds will likely increase, and that’s only one trend reshaping the landscape and redefining alternative investing opportunities. Here are four things investors should consider.

1) Higher dispersion is creating fertile ground for long/short strategies. The environment, particularly in the US, is favorable for long/short strategies. To start with, corporate and economic fundamentals are strong. We’re also seeing more volatility and dispersion—bigger distinctions between security valuations mean more active-management potential. And even though the US equity market seems fully valued overall, we still think there are misvaluations that make long/short approaches attractive.

We particularly favor strategies that can leverage increased dispersion if there’s an uptick in volatility. These strategies should use bottom-up, fundamental analysis to exploit long/short idiosyncratic—or security-specific—opportunities. We also think strategies that can take advantage of the impact of divergence in central bank policies could benefit.

Bonhoeffer Fund July 2022 Performance Update

Screenshot 27Bonhoeffer Fund's performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more The Bonhoeffer Fund returned 3.5% net of fees in July, for a year-to-date return of -15.8%.   Bonhoeffer Fund, LP, is a value-oriented private in