Volatility levels are rising and correlation among asset classes is making traditional portfolio diversification techniques less effective. In this white paper and on-demand class, we discuss how alternative investments can be used to help mitigate volatility, and how investors can make portfolios more resilient by focusing on factors such as cash-flow generation and valuation.
Key Takeaways
- Traditional portfolio diversification techniques are becoming less effective as correlations among asset classes heighten.
- Persistent upside risks to inflation and downside risks to growth point to continued market volatility in the remainder of 2024 and beyond.
- Amid market uncertainty, investors are turning to private assets to diversify portfolios and help manage volatility.
- But not all alternatives are created equal. Investors can create resilience by targeting assets with certain inherent traits and exposure to specific investment factors.
- We believe that focusing on cash-flow generating assets at attractive valuations can maximize the volatility-dampening effect of an alternatives portfolio and enhance long-term risk-adjusted potential returns.
The information herein is provided for educational purposes only and should not be construed as financial or investment advice, nor should any information in this document be relied on when making an investment decision. Opinions and views expressed reflect the current opinions and views of the authors and Apollo Analysts as of the date hereof and are subject to change. Please see the end of this document for important disclosure information.
Important Disclosure Information
This presentation is for educational purposes only and should not be treated as research. This presentation may not be distributed, transmitted or otherwise communicated to others, in whole or in part, without the express written consent of Apollo Global Management, Inc. (together with its subsidiaries, “Apollo”).
The views and opinions expressed in this presentation are the views and opinions of the author(s) of the White Paper. They do not necessarily reflect the views and opinions of Apollo and are subject to change at any time without notice. Further, Apollo and its affiliates may have positions (long or short) or engage in securities transactions that are not consistent with the information and views expressed in this presentation. There can be no assurance that an investment strategy will be successful. Historic market trends are not reliable indicators of actual future market behavior or future performance of any particular investment which may differ materially, and should not be relied upon as such. Target allocations contained herein are subject to change. There is no assurance that the target allocations will be achieved, and actual allocations may be significantly different than that shown here. This presentation does not constitute an offer of any service or product of Apollo. It is not an invitation by or on behalf of Apollo to any person to buy or sell any security or to adopt any investment strategy, and shall not form the basis of, nor may it accompany nor form part of, any right or contract to buy or sell any security or to adopt any investment strategy. Nothing herein should be taken as investment advice or a recommendation to enter into any transaction.
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The Standard & Poor’s 500 (“S&P 500”) Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies by market value.
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