Insights

Volatility levels are rising and correlation among asset classes is making traditional portfolio diversification techniques less effective. In this white paper and on-demand class, Apollo discuss how alternative investments can be used to help mitigate volatility, and how investors can make portfolios more resilient by focusing on factors such as cash-flow generation and valuation.

Key Takeaways

• Traditional portfolio diversification techniques are becoming less effective as correlations among asset classes heighten.
• Persistent upside risks to inflation and downside risks to growth point to continued market volatility in the remainder of 2024 and beyond.
• Amid market uncertainty, investors are turning to private assets to diversify portfolios and help manage volatility.
• But not all alternatives are created equal. Investors can create resilience by targeting assets with certain inherent traits and exposure to specific investment factors.
• They believe that focusing on cash-flow generating assets at attractive valuations can maximize the volatility-dampening effect of an alternatives portfolio and enhance long-term risk-adjusted potential returns.

For more information please contact us or visit the Apollo Global Management page.