Special teams have the potential to change outcomes.
In football, special teams don’t play every down—but when they take the field, they can change the game. A well-executed kickoff pins the opponent deep. A clutch field goal leads to an overtime victory. A blocked punt shifts momentum entirely. Special teams have the potential to deliver results when the offense and defense falter.
In portfolios, special team strategies are the diversifiers and tactical tools that offer differentiated returns and may perform when traditional assets struggle. These are the uncorrelated return streams, the inflation hedges, the downside protection mechanisms, and the precision instruments that advisors deploy situationally to improve outcomes[1].
Special teams’ strategies often have low or variable correlation with stocks and bonds, making them valuable tools for true portfolio diversification. Here’s how they work across four distinct plays:
“Special teams have the potential to deliver results when the offense and defense falter.”
In a crisis, correlations spike, and many assets fall together. During 2008, offensive strategies and many defensive strategies (particularly credit-related) suffered steep losses. Uncorrelated special teams’ strategies, such as managed futures with its history of “crisis alpha,” may provide protection. Building these strategies into portfolios in advance helps create resilience across market conditions.
Punt: Reduce Risk with Structured Notes and Tail Hedges
Field Goal/Extra Point: Add Edge with Arbitrage, Niche, and Specialty Strategies
Kickoff: Shape the Start with Managed Futures and Global Macro
Return Team: Respond to the Unexpected with Real Assets
[1] See our article, “Why Diversification Still Matters: Reassessing a Core Principle in Today’s New Market Reality”, June 10, 2025.
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CONTENTS
A New Playbook for Client Portfolios
Framing the History of Alts and Asset Allocation Through Football
Today’s Updated Playbook: Alts Playing Alongside Their Stock and Bond Teammates
Offense: Growth Assets and Strategies
Defense: Income Assets and Strategies
Special Teams: Uncorrelated and Tactical Strategies
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