Determining how much to allocate to alternatives requires more than a rule of thumb — it takes an analytical approach. A 1% allocation to a bear-market alternative may have limited impact, while a 50% allocation could dramatically reduce long-term returns. In this paper, we examine the efficient frontier, managed futures, drawdown mitigation, and the math behind combining uncorrelated assets to help you find the right balance.
Financial professionals have been increasing their allocations to liquid alternatives, yet many remain under-allocated relative to their institutional counterparts. Understanding the specific goal behind an alternative investment, whether it’s mitigating drawdowns, enhancing returns, or lowering correlation, is key to determining the right weighting for a portfolio.
The Macro View: Late-Cycle Resilience Highlights the Importance of Quality, Flexibility, and Selectivity By David Miller, Co-Founder and Chief Investment Officer, Catalyst Capital Advisors LLC and Rational Advisors, Inc. Macro Outlook We expect the macro environment over the coming quarter to remain defined by growth at roughly 3% acceleration in Gross Domestic Product (GDP), persistent […]
Catalyst Capital Advisors today announced the promotion of Greg Griffith to Chief Technology Officer, effective January 1, 2026.
The Macro View: As U.S. Growth Slows, Is a Soft Landing in Sight? By David Miller, Co-Founder and Chief Investment Officer, Catalyst Capital Advisors LLC and Rational Advisors, Inc. The U.S. economy is gradually slowing from the strong post-pandemic expansion, with GDP growth expected to moderate in the fourth quarter as tighter financial conditions and […]
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