June 2025
In today’s uncertain environment, we think investors may need a new playbook. An allocation to alternatives may provide the opportunity for greater diversification with access to emerging return streams. Ultimately, alternative investments could help a portfolio play offense and defense—the potential for attractive return streams and diversification to mitigate risk.
Alternative investments may serve as a valuable complement to public-market holdings, potentially helping to build a more balanced and resilient portfolio. Private equity, private credit, hedge funds, real estate and infrastructure may help portfolios gain exposure to strategies that often behave differently from traditional stocks and bonds. In our view, diversification can mitigate overall portfolio volatility and help smooth performance through varying market cycles.
We think four key themes are changing the game in alternative assets:
- Private Equity is poised for the breakaway
- Shifting gears drive opportunity in private markets
- Innovation is moving from the boardroom to the locker room
- Structural changes widen the playing field
Discover the new playbook for alternative investments.
Asset allocation and diversification cannot assure a profit or protect against loss.
This material has been provided for informational purposes only and should not be construed as investment advice or a recommendation of any particular investment product, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Prospective investors should consult a legal, tax or financial professional in order to determine whether any investment product, strategy or service is appropriate for their particular circumstances. Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission
BNY Advisors is the brand name under which BNY Mellon Advisors, Inc. conducts its investment advisory business. BNY Mellon Advisors, Inc. is an investment adviser registered as such with the U.S. Securities and Exchange Commission pursuant to the Investment Advisers Act of 1940, as amended. BNY Mellon Advisors, Inc. is a subsidiary of The Bank of New York Mellon Corporation.
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BABR-752830-2025-06-10