In the first quarter of 2022, liquid alternatives gained approximately $11.4 billion in net inflows, according to an industry report from Wilshire. Despite this monumental growth, many fund managers expect to see even more investors incorporate liquid alternatives into their asset allocation mix. FundFire recently spoke with Johann Lee, director of research at AlphaCore Wealth Advisory, to help investors learn more about how they can begin investing in the liquid alt space.
In our current environment of heightened inflation, market volatility and Federal Reserve interest rate hikes, Lee says many clients are searching for alternative assets that can act as diversifiers. “You are seeing a lot of replacement and substitution attraction across liquid alts,” he explains.
Lee tells the publication that AlphaCore specifically looks at the biggest players in the liquid alt space along with smaller funds that will never be in the top 20 by assets under management. “Keep your pulse on the universe at all times and don’t just focus on the top 20 or the largest but understand what each line item and sub-strategy really does,” says Lee.
To learn more about how AlphaCore Wealth Advisory utilizes liquid alternatives as a strong “third leg of the stool” to help build well-diversified portfolios capable of growing wealth, click here.