In an interview with HedgeNordic, Marco Barchmann and Jerome Yim, co-founders of Spectrum Systematic Alpha, outlined their innovative approach to delivering consistent, uncorrelated returns through a multi-strategy, cross-asset systematic portfolio.

Here, we provide an overview of the broad types of alternative investments and some of the considerations investors may need to take into account when including them in their portfolios.

In ‘An introduction to alternatives investing’ we defined alternatives as investments that deliver uncorrelated returns. The terms 'uncorrelated returns' and 'diversification' are related and are a common objective when constructing investment portfolios. Understanding what those terms really mean is essential to properly appreciate how alternative investments can contribute to robust long-term portfolios.

In this series we seek to lift the veil on the sometimes-opaque world of alternatives investing. The universe of alternatives is broad and diverse, so it is important to understand that different alternative investments can provide very different benefits and come with different kinds of risks.