On Investors’ Minds - APAC Edition From art to science: Building a more resilient portfolio with alternatives
Nov 6, 2025
Pulkit Sharma, Head of Alternatives Investment Strategy at J.P. Morgan Asset Management, dives into the evolving world of alternative investments. He defines multi-alternatives and discusses the critical components for successful investment portfolios. Pulkit emphasizes a data-driven approach over 'fingerpainting' to enhance alpha sources like asset allocation and manager selection. He also outlines a six-step framework for building resilient portfolios while sharing insights on current trends in infrastructure and real estate, asserting the importance of strategic allocations.
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Alternatives Are Now Essential
- Alternatives evolved from optional to essential as information in public markets reduced alpha opportunities.
- Private and public alternatives now offer broader access and bigger allocations, forcing more systematic portfolio construction.
From Fingerpainting To Discipline
- A pension plan executive described their earlier approach to alternatives as 'finger painting' when allocations were small.
- That informal approach is no longer sufficient given larger allocations and a wider menu of alternative options.
Defining Multi-Alternatives
- Multi-alts means holding multiple alternative categories like real estate, private equity, infrastructure and private credit.
- Investors should size beta first, then target alpha from both asset allocation and manager selection.