Stephanie Williams in Bloomberg: Where to Invest $1 Million Right Now

In today’s environment, markets and uncertainty go hand-in-hand. Between potential interest rate hikes, rising inflation and the potential impact of the new Omicron variant, many investors are seeking out investment opportunities outside the equity market. Bloomberg recently turned to AlphaCore Wealth Advisory Senior Wealth Advisor Stephanie Williams, CAIA, for insight on where she believes investors should deploy $1 million right now.

With alternative investments’ ability to provide a differentiated return stream away from stocks and bonds, Williams believes that now is an opportune time for investors to allocate assets to hedge funds that utilize both long and short strategies.

“The past decade has been a tough environment for long/short strategies versus long-only strategies, because the market has moved steadily in one direction with little volatility,” Williams explains. “Stocks have often moved synchronously up and down regardless of company fundamentals, akin to a rising tide lifting all boats. This is common when going from a low valuation environment to a high valuation environment. We are starting to see signs of this changing, creating more opportunities for skilled investment managers to take advantage of a wider distribution of stock prices.”

Williams specifically believes that long/short equity hedge funds that are investing in tomorrow’s FAANG and fintech stocks and shorting traditional businesses that utilize outdated business models should be of particular interest to investors.

“What is unique about this strategy is that they maintain a robust short portfolio alongside their longs, which results in average net exposure of only 56% to the broad equity market,” Williams tells the publication in reference to one of these funds. “This means they may offer protection in the event of a market downturn and can potentially compound at a higher rate over a market cycle.”

Click here to read the entire Bloomberg feature.

* Indicates a required field

I am interested in learning about the services of AlphaCore Wealth Advisory LLC, an SEC registered investment adviser. By submitting my name and phone number (which I intend and agree will constitute my electronic signature for the purpose of agreeing to this consent), I expressly consent to be contacted by AlphaCore by phone and/or email, even if the number I provide is on a Federal and/or a state "Do Not Call" list. I represent that I am authorized to provide this consent on behalf of the phone number provided and that such consent is given voluntarily. I understand that I am not required to enter into this consent as a condition of purchasing any property, goods, or services.

This consent is effective unless and until revoked by me, which may be done at any time by emailing compliance@alphacorewealth.com, by calling 858-875-4100, or by notifying the representative that calls you.

You may request a copy of this consent or our privacy policy to be emailed or mailed to you by contacting us. Click here to read AlphaCore's privacy policy.

This field is for validation purposes and should be left unchanged.