Abstract
This article discusses the role of nontraditional assets in constructing a portfolio for long-term investors. Alternative investments can provide novel patterns of returns and increase diversification benefits. In turn, investors can apply leverage in conjunction with wide diversification to improve their risk-adjusted performance. The concepts are illustrated via popular categories of alternative investments. We focus on long-term investors who are able to rebalance their portfolios on a regular basis. Careful risk management is critical in this domain.
| Original language | English (US) |
|---|---|
| Title of host publication | Encyclopedia of Quantitative Risk Analysis and Assessment |
| Subtitle of host publication | Melnick/Risk |
| Publisher | wiley |
| Pages | 1-10 |
| Number of pages | 10 |
| ISBN (Electronic) | 9780470061596 |
| ISBN (Print) | 9780470035498 |
| DOIs | |
| State | Published - Jan 1 2008 |
All Science Journal Classification (ASJC) codes
- General Mathematics
Keywords
- alternative investments
- diversification
- fixed mix
- portfolio management
- re-balancing gain