Today’s markets demand more than a 60/40 or 50/30/20 playbook. Advisors need portfolios that can go beyond stocks and bonds with a few alts tacked on, to respond to market shocks and inflation spikes, navigate geopolitical uncertainty, capture private market opportunities, and deliver income when bond yields disappoint.
The modern playbook recognizes that alternatives are no longer a separate asset class sitting on the sidelines. They’re integrated throughout the portfolio—some are designed to play offense when growth is the goal, defense when income and stability matter, and special teams when diversification and uncorrelated returns can change the outcome.
Think of portfolio construction like coaching a football team. You draft your players, develop your playbook, and set your game plan. When the game starts, your whole team is prepared. As the game develops, you adjust based on field position, score, and game conditions. You strategically and thoughtfully move players on and off the field. You call different plays for different situations to create opportunities and reduce risks.
“Alternatives are no longer a separate asset class sitting on the sidelines. They’re integrated throughout the portfolio.”
The same principle applies to client portfolios. With alternatives now able to contribute at nearly every position,
advisors have the flexibility to construct allocations that match client goals, market conditions, and risk tolerance—while maintaining the discipline and structure that clients expect.
Let’s walk through how this works, one position at a time.
“Think of portfolio construction like coaching a football team. You don’t run the same play every down.”
About Alternative Insights
Get exclusive market insights and expert perspectives on key trends and opportunities to help you navigate the ever-changing financial landscape with confidence.
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
THE OPINIONS EXPRESSED ARE THOSE OF THE AUTHOR OR THE INDIVIDUAL TO WHOM THE STATEMENTS ARE ATTRIBUTED. WHILE BELIEVED TO BE REASONABLY BASED ON FACT AND INQUIRY, THERE CAN BE NO GUARANTEES THAT SUCH OUTCOMES EXPRESSED OR IMPLIED HAVE OCCURRED OR WILL INDEED OCCUR.
THIS DOCUMENT IS NOT A SOLICITATION FOR INVESTMENT. SUCH INVESTMENT IS ONLY OFFERED ON THE BASIS OF INFORMATION AND REPRESENTATIONS MADE IN THE APPROPRIATE OFFERING DOCUMENTATION. ANY INVESTMENT PROGRAM DESCRIBED HEREIN IS SPECULATIVE, INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS. NO REPRESENTATION IS BEING MADE THAT ANY INVESTOR WILL OR IS LIKELY TO ACHIEVE SIMILAR RESULTS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
