Mid-Summer Alternatives to Traditional Assets

On hedge funds, private debt, farmland, and private equity

The alternatives landscape is in a constant state of change. Not just in terms of performance, but also in terms of products. Novel strategies, new geographies, new opportunities arise all the time—and so do new risks. Allocators interested in this space need to stay abreast of these developments their quest to capture alpha and avoid losses.

HEDGE FUNDS

Common Ownership and Hedge Fund Activism: An Unholy Alliance? (ECGI)

This paper shows that in a competitive equilibrium under separate ownership, hedge fund activism increases social welfare under certain circumstances.

A Core Allocation to CTAs Might Be as Wise as Going Tactical (Amundi)

For compliance reasons, this paper is NOT accessible in the United States

An alternative way to sort out how CTAs’ market exposures can benefit to a diversified allocation is to assess their implicit dominant macro scenario.

Trends, Challenges, & Insights from Leading Hedge Funds (Dynamo Software)

The landscape of hedge fund management is notoriously dynamic and complex, presenting a unique set of challenges and opportunities for fund managers.

Managed Futures: Better to Have More than One Manager (Mark Rzepczynski)

This short but timely article argues that is best to diversify across multiple managers when investing in CTAs.

FARMLAND

Carbon Markets to Leverage Forests for Sustainability (BBVA)

Developing forest-based carbon markets presents challenges, including high transaction costs and the need for effective governance.

No, China Is Not Buying Up All U.S. Farmland (Cornell)

Currently, 24 states have some kind of restrictions on foreign ownership of land, but each state’s restrictions vary.

Innovative Agricultural Practices Can Stabilize Rice Prices (ADBI)

Despite a slight decline to an average of $613/metric ton in March, rice prices remain 29% higher than they were a year ago.

PRIVATE DEBT & PRIVATE EQUITY

Is Private Equity a Public Financial Hazard? (Reason Foundation)

Private equity—ownership stakes in businesses that are not traded on an exchange—has become a favored asset class of U.S. public pension plans.

Global Private Capital Barometer Summer 2024 (Coller Capital)

For 20 years, this report has been the go-to research snapshot for private markets, a widely respected and much-used window into the priorities of LP investors everywhere.

Compelling Market Dynamics within U.S. Private Credit (NCPERS)

Traditionally, private credit was dominated by sponsor- backed lending, focusing on dividend recapitalizations or traditional leveraged buyouts.

Alternative Credit (CFA Institute Research & Policy Center)

Alternative credit has been growing in recent years. Are the forces behind its growth still healthy? What are the risks of this relatively new financial market?

Asia's Private Investment Landscape: Trends, Strategies & Insight (Morgan Lewis)

For compliance reasons, this paper is only accessible in certain geographies

The private credit markets of Asia have grown almost 30-fold in the past two decades. What are the ESG implications of this growth?