For investors seeking inexpensive exposure to liquid, tax-friendly, and transparent alternative investments and strategies, CLS’s Alternatives Strategy attempts to minimize volatility and produce positive risk-adjusted returns when compared to the broad market. CLS’s use of ETFs within this strategy, which means we may be able to provide access to alternative strategies that are typically reserved for ultra high net worth and accredited investors, such as hedge funds and private equity.
This strategy invests in ETFs that specialize in:
- Private equity
- Managed futures
- Merger arbitrage
- Rules-based quantitative analysis
- Active hedging
The strategy will not invest in broad based indexes. It primarily invests in equities, but may also incorporate commodities.
Explore the Benefits of Using Alternatives within a Portfolio
- Diversification. Alternatives are lowly- or non-correlated to the market, meaning they can go up or down, regardless of stock market direction. This can help reduce overall portfolio volatility, and utilizing different types of alternatives adds diversity to the portfolio.
- Liquidity. Some categories of alternatives are more liquid than traditional bonds or bond funds.
- Potential for Enhanced Returns. Many alternatives have a distinct return profile that can enhance long-term returns by reducing the impact of market drawdowns.
- Income. Many alternative investments and strategies have the ability to generate meaningful income.