Increasingly, high-net-worth and institutional investors are turning to alternatives, and the trend is expected to continue through the year.
That’s according to a survey from Altegris Advisors conducted at the Strategic Investment Conference, which found that 66 percent of respondents said they intended to boost their allocation to alternatives during the second half of 2015.
The top asset classes they singled out were managed futures/global macro (32 percent) and private equity (28 percent). The former were at the top of the list for 45 percent of registered investment advisors and 31 percent of private investors, while 36 percent of institutions chose private equity as their first choice.
Investor opinion is still divided as to how much of a portfolio alternatives should occupy, with 59 percent putting the allocation sweet spot between 10–25 percent and 15 percent saying it should be considerably higher, making up between 25–50 percent.
Less than a quarter think alternatives should be relegated to less than 10 percent.