De-Risking Your Investment Portfolio
No bull market lasts forever, and sudden downturns often show up unannounced. We have already witnessed the return of volatility to increasingly correlated public markets causing many investors to prudently reposition their portfolios to guard against the risk of significant principal loss. Recovery from such a hit can take five to ten years or more. A 40% decline in a portfolio’s value, for example, subsequently requires an almost 70% gain just to get back to where that investor started.
Increasing exposure to alternative investments – which aim to provide yield that is less correlated to and less volatile than traditional public equities and fixed income – is the answer.
Yet many investors are uncertain how they can access a diversified alternatives portfolio in an elegant, turnkey manner, while also maintaining liquidity.
Highmore’s Liquid Alternative Portfolios were created to provide all investors, large or small, with access to a diversified portfolio of alternative investments, while maintaining daily liquidity.
The Portfolios are supported through Highmore's investment sourcing, due diligence, monitoring, and portfolio construction, and are available through Fidelity Investments, Charles Schwab, and TD Ameritrade.
The Portfolios can be purchased by individual investors, or used as a white-labeled investment solution for Registered Investment Advisors and investment firms seeking a diversified solution.
Highmore Liquid Alternative Portfolios
Choosing The Best Portfolio For You
Investors can choose from three Risk Targeted Portfolios for those wanting a diversified, risk targeted portfolio, and an Alternative Income Portfolio for those seeking an alternative or complement to their fixed income portfolio.
Risk Targeted Portfolios
Risk Targeted Portfolios are designed to provide clients with a diversified holistic investment portfolio, designed using a risk targeting approach. This approach provides clients the ability to choose between a conservative, balanced, or growth option.
The Portfolios can be invested on a standalone basis as a client’s overall holistic portfolio, or as a 20-40% allocation of a traditional client investment.
The Conservative Portfolio aims to preserve the portfolio’s value by targeting low volatility returns and generating returns primarily through fixed-income and credit investments, while on average being at 1/3 of equity market volatility.
The Balanced Portfolio aims to generate returns through a combination of capital growth and current income strategies with moderate volatility or on average, 1/2 of equity market volatility.
The Growth Portfolio aims to generate returns predominantly through capital appreciation with equity-like volatility through investing in equity and equity-like instruments, though with 2/3 of equity market volatility.
Alternative Income Portfolio
The Alternative Income Portfolio is designed for clients focused on enhancing their ability to generate current income, or for those looking to complement their existing fixed income portfolio allocation.
The Portfolio is designed to display a lower correlation and beta to the traditional fixed income markets.
The Portfolio can be invested in as a standalone investment for investors looking to enhance their current income, or as a 20-40% complement to their existing fixed income allocation.