Alternatives: All You Need to Build a Stronger Portfolio

The latest insights into hedge funds, private credit, and more

This collection of timely research provides allocators with key insights into the latest developments related to crypto assets, private equity, hedge funds, farmland, and private credit—all key asset classes and strategies of the expanding alternatives universe.

CRYPTOS

Must Read: Can Bitcoin Halving Emulate Searing Rallies of the Past? (CME Group)

From Bitcoin’s inception on January 3, 2009, through November 28, 2012, its block reward was set at 50 BTC per new block.

Crypto AI Revenue Predictions by 2030 (Van Eck)

Crypto will be extraordinarily useful to AI. it is already solving many current and future challenges confronting AI.

Crypto Factor Investing (Sparkline Capital)

Bitcoin ETFs broaden access to the asset class, enabling spot crypto ownership in the comfort of a traditional brokerage account.

HEDGE FUNDS

Short Campaigns by Hedge Funds (Alpha Architect)

Activist hedge funds represent close to 25% of all hedge funds. However, they represent almost 80% of funds that initiate short campaigns.

Hedge Fund Industry Performance Review Feb 2024 (Aurum)

The hedge fund industry delivered a positive, albeit small, return in the month of February. Hopes are that performance will remain positive in 2024.

Hedge Funds Investing in Credit Are in Demand (Goldman Sachs)

Last year hedge funds underperformed traditional 60/40 portfolios by the widest margin since 2000. Will this trend continue?

PRIVATE EQUITY

Asia-Pacific Private Equity Report 2024 (Bain & Company)

For the second year in a row, uncertainty hovered over Asia-Pacific private equity markets. Can these markets recover?

Stewardship in Private Equity: A Guide for General Partners (UN PRI)

For many private equity GPs, transforming companies is a fundamental part of their business model and a key way that they deliver value and meet their fiduciary duty to clients.

The Era of the PE Denominator Effect (CFA Institute Research & Policy Center)

For investors building up an allocation in PE who have not yet reached their target, the denominator effect could accelerate the optimal portfolio construction process.

PRIVATE DEBT

Infrastructure Debt in Private Credit Portfolios (Ares Management)

Global infrastructure is expected to exceed $3.7 trillion a year through 2035, with a gap of $5.5 trillion over the same period that is expected to be funded by private markets.

NAV Finance 101: The Next Generation of Private Credit (Oaktree)

NAV lending usually features bespoke loans that are structured based on the specific needs of the lender and borrower.

Private Credit: Characteristics and Risks (U.S. Federal Reserve)

Private credit typically involves the bilateral negotiation of terms and conditions to meet the specific needs and objectives of the individual borrower and lender.

FARMLAND

Farmland During Recessions (CAIA blog)

Farmland values are dictated by global factors, national factors, and all the way down to parcel-specific attributes, such as soil quality and water rights.

Farmland Values Report (Farm Credit Canada)

While cultivated land is the predominant land type available throughout Canada, pastureland is also significant.

Farmland and Agriculture White Paper (Camradata)

For institutional investors with a long-time horizon, such as pension funds, farmland can offer stable returns, capital protection and diversification.