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Direct investment in private companies can deliver returns far exceeding those of private equity and other asset classes while also providing attractive diversification and increased control. The potential for outsize returns, however, comes with increased risk, meaning investors must carefully assess the various financial, organizational and manag...

Four basic hedging techniques – long/short, covered call, buy/write indexing and index put options – represent varying levels of risk but, used appropriately, may reduce portfolio volatility and smooth overall returns. Defensive hedging, techniques designed to protect against loss, may even be well-suited for cautious or conservative investors.

Structured notes essentially replicate two types of financial instruments: zero-coupon bond and option(s). As a result, in the creation of structured notes, such financial instruments, their costs and several other factors contribute to the overall pricing of the notes.

One of the newest types of funds specializes in replicating the beta of hedge funds, a traditionally non-correlated asset class. By seeking to replicate the beta of the broad universe of hedge funds, these funds can bring a level of non-correlated returns to any portfolio allocation.

Post-crisis core portfolios may benefit from some revisions to traditional asset allocation. Each potential component of the new core (hedged equity, global fixed income and risk-managed alternatives) includes an enhancement that may offer greater risk management better suited to today's environment.

When stocks are volatile and bonds offer historically low yields, investors may seek to generate positive returns by investing in assets that are either driving inflation or offer protection during turbulent economic times. These real assets have historically outperformed stocks and bonds during periods of accelerating inflation and provided additi...

Once an initial portfolio has been constructed, it is critical that the asset allocation be monitored and rebalanced in a systematic and disciplined manner. Systematic rebalancing not only helps maintain a consistent and appropriate level of risk but, in many cases, also may enhance the return of a portfolio.

The underlying TALF investment thesis is compelling, but for many individuals the return potential may be too small given the illiquidity and leverage. This paper examines the pros and cons of TALF investments, enabling individuals to make an informed decision about whether this particular investment opportunity is right for them.

Meeting significant charitable goals efficiently creates a disproportionate need for the characteristics inherent in liquid, public securities. Increasing the allocation to liquid asset classes from 29% to 75% on a tax-managed basis can generate comparable returns to the endowment model after taxes while maintaining the flexibility needed to handle...

Managed futures, as an asset class, has several inherently beneficial attributes that are often unavailable in other types of alternative investments. This paper examines those attributes – liquidity, non-directionality, non-correlation, cash efficiency, transparency and diversification – and their relevance to investors of substantial means.

The recent economic crisis resulted not only in a significant loss of wealth, but also in a loss of trust. This article addresses the psychology of that loss of trust and presents a constructive response to it for family offices and their clients: Create standards for investing that can help avoid a re-occurrence of recent events.

This paper defines a relatively new measure of active management; discusses how it might be used alone and in combination with tracking error to better characterize and compare active managers; discusses how it might help to identify managers most likely to outperform their benchmarks; and promotes further discussion and research of active share as...

Active managers and alternative investment strategies offer the opportunity to add value over passive investments and can offer capital protection. However, as recent cases of financial wrongdoing have shown, it is critically important for investors to adhere to best practices in evaluating a manager's claims and demanding both transparency and an ...

A new report from BlackRock highlights the more significant flaws in the hedge fund business model, remedies that could repair the industry's damaged reputation and reasons why hedge fund and fund of funds strategies remain compelling in 2009 and beyond.

Investing in energy is not without its risks, such as the volatility of commodity prices, funding concerns and regulatory uncertainty. However, Neuberger Berman believes this sector offers promising, long-term investment opportunities due to the move to a lower carbon-energy diet and its reliance on alternative energy sources and conservation.