Stephanie Pierce discusses solutions for unpredictable markets. Lisa Crafford shares her thoughts on M&A activity. Trey Prescott talks about advisors looking to go independent. Lisa Lewin discusses women leading the way in alternative investments.
Including alternative investments in portfolios provides diversification and downside protection in volatile markets.
Hedge funds can serve as a potential investment strategy to hedge market risk and outperform traditional long-only strategies during turbulent market conditions.
Deep dives
The Importance of Alternative Investments in a Volatile Market
In a panel discussion at the BNY Mellon Pershing Insight Conference, experts highlighted the importance of including alternative investments in portfolios to provide diversification and downside protection in volatile markets. Strategies such as private credit, private debt, and market-neutral hedge funds were discussed as potential options for investors seeking uncorrelated assets. The panel also emphasized the need to consider individual liquidity preferences and risk tolerance when selecting alternative investments.
The Role of Hedge Funds in Market Volatility
Hedge funds were highlighted as a potential investment strategy for investors looking to hedge market risk and provide downside protection. The panelists acknowledged that hedge funds can prove their worth during volatile markets, where they have the opportunity to outperform and differentiate themselves from traditional long-only strategies. The focus was on hedge fund managers who demonstrate their ability to add value, particularly in turbulent market conditions.
The Growing Interest in Private Credit
Private credit was recognized as an area of interest for investors, although concerns were raised about the current credit tightening and the potential risks associated with investing in private credit during a challenging credit cycle. While private credit has been a popular choice for investors in recent years, opinions on its future performance varied. It was noted that the value of private credit may heavily depend on prevailing credit conditions and the ability of investors to allocate resources effectively.
Promoting Diversity in the Alternative Investment Space
The panel also emphasized the importance of promoting diversity within the alternative investment space, particularly in leadership positions and senior investment roles. The benefits of diversity, such as diverse thinking, opinions, and talent, were highlighted as contributors to better decision-making and improved performance. While the industry still faces challenges in terms of the limited pool of female talent, progress has been made with more women taking on key roles and launching successful funds.
Stephanie Pierce, Chief Executive Officer of Dreyfus, Mellon and ETFs at BNY Mellon, discusses solutions for unpredictable markets. Lisa Crafford, Director and Head of Business Consulting at BNY Mellon Pershing, shares her thoughts on M&A activity. Trey Prescott, Director of Business Development at Advisory Services Network, talks about advisors looking to go independent. Lisa Lewin, Director for Prime Services division of at BNY Mellon Pershing, discusses women leading the way in alternative investments. Hosts: Carol Massar and Matt Miller. Producer: Paul Brennan.