SG Private Banking - Alternative strategy
This Asian entrepreneur, between 40 and 50 years old, has developed his company across Asia and wants to enjoy double digit growth from his investments with a 3 to 5 years investment time horizon. He already has a well diversified portfolio and is looking for a more focused approach for this investment with measured risk. He is performance-oriented and interested in investing in alternative investments.
Although equities remain our favoured asset class, there are some risks of a further consolidation of the equity markets especially after the stellar performances of last year. As he?s an experience investor, we shall focus on alternative investments although these investment vehicles remain diversification products, which means that they shouldn?t exceed a predetermined percentage of the financial wealth of the client.
Hedge funds, as an investment, offer a good diversification due to their low correlation to traditional investments such as equity and bond markets. Nevertheless, as they are very specific investments, we recommend investing in many funds to diversify the risk. We would recommend investing in this asset class with two strategies. The first would be a broad based investment in alternative investments and the second would be a more specific or opportunistic approach.