Over the past decade, one of the most undeniable investment trends has been the move toward passive equity products. The lower fees associated with index funds and a pretty good track record against active strategies in the most efficient markets has led many advisers to build their clients’ portfolios with passive equity strategies. But passive products’ success could be financial markets’ next undoing.


    As an asset manager that specializes in alternatives, we receive a lot of questions from advisors on the subject. With uncertainty rising in the markets, now may be a great time to freshen up on your alternatives knowledge. Below are some frequently asked questions we’ve received from advisors on alternatives, along with some of our recent blog posts and other resources that may help provide answers.

  • Rolodex image for Viewpoints  

    As alternative mutual funds proliferate, Morningstar faces a classification conundrum: How can single categories include funds with entirely different characteristics?

    The question has deep implications for advisors, who will have to look beyond star ratings or past performance and get a deeper sense of an alternative strategy’s inner workings before deciding whether it matches a client’s objectives.

  • University of Alts  

    Did you know the average person in the U.S. spends nearly half a day interacting with media?* This mass consumption creates information overload for many, and it’s a trend we’ve heard a lot about from our advisor clients. Many of our clients noted that investors are coming into meetings having consumed a lot of data points on investments, and are confused about the statistical terms commonly used. To help alleviate this issue, we’ve created the 361 University of Alts Educational Series.

  • Preservation Mode Investing  

    After a somewhat calm third quarter, October and November have been rattled by 24 changes of at least 1% up or down in the S&P 500 Index. (For reference there was not a single 1% move up or down during the third quarter.) This uncertainty once again reminds advisors and investors that they should consider shifting their portfolios from participation mode to preservation mode.