Benefits of Alternative Investments

The Investment Dilemma

Over the past few years alternative investments have increasingly become mainstream as institutional investors have come to value the diversification and risk dampening benefits that private equity and hedge fund products provide through low correlation to long equity and fixed income portfolios. 

Also, many institutional investors have experienced investment performance returns from traditional investment products that are well below planned return targets. 

The gap between targeted rates of returns and actual investment results has created a dilemma for institutional investors and an associated increased demand for new and innovative market investment alternatives designed to generate higher alpha. The resulting flow of new institutional assets has already begun to challenge the capacity constraints of many well-established alternative funds.

Emerging Managers

Mosaic managers can provide diverse/hybrid alternative investment philosophies that compliment the traditional investment plan allocation.

Emerging managers, also possess a strong incentive to deliver performance and supply institutional investors with additional capacity and access to alternative market investment opportunities. These managers bring a range of portfolio diversification benefits that round out an overall fund investment structure. This portfolio diversification may also be achieved within a multi-manager/fund-of-funds structure or as a compliment to an existing alternative investment program.

At Mosaic, we believe that incorporating emerging alternative managers into an investment program best positions investors to achieve optimal diversification. Mosaic’s managers are prime talent with proven track records and the potential to deliver extraordinary long-term performance.