Strategies
The world of alternative investments encompasses a broad range of investment strategies and structures that differ from traditional investments in publicly traded stocks and bonds. Many alternative investments have a low correlation with traditional investments, and as a result they help dampen volatility, provide protection in down markets, and smooth the overall results achieved by a portfolio.
Seeking Absolute Returns
Traditional managers are generally focused on outperforming a benchmark, such as the S&P 500 Stock Index, but many alternative managers are focused on providing consistently positive absolute returns rather than seeking returns that are relatively better than whatever results the markets are offering.
Aligning Interests
While traditional asset management firms are paid a percentage of total assets under management, alternative managers derive much of their compensation from the returns they generate for their investors. Their interests are further aligned with their investors because alternative investment managers typically have a significant portion of their personal net worth invested in their funds.
The Right Blend
Past performance is never a guarantee of future results, but many alternative managers have provided a blend of risk and reward that ONYX partners understand is valued by their investors.