To deal with these challenges, buyers face a normal menu of choices (Exhibit 1). To enhance the tradeoff between threat and return in portfolios, they will reallocate to asset lessons offering higher risk-adjusted returns, decrease correlations, or a little bit of each. Lately, for instance, sure buyers have elevated their allocations to alternate options, together with illiquid personal property like personal fairness and actual property. Though this has been a profitable method, all these automobiles usually are not obtainable to many particular person buyers.
