Implementing Alternatives
By investing in alternative strategies, investors may achieve additional risk mitigation and potential return enhancement. At Hatteras Funds, we believe an alternative investments’ portfolio should provide exposure to both hedged strategies and private investments as a compliment to a traditional long-only portfolio of stocks and bonds. Click here to download our Allocating to Alternatives flyer.
Using the tool below, allocate the model portfolio among the various asset classes.
Asset Allocation (January 1, 1990 - September 30, 2011)
Model Portfolio
| Alternatives | 80 | |
| Hedged Strategies | ||
| Private Investments | ||
| Stock | ||
| Bonds | ||
| Total | 100 | |
Portfolio
Statistics
| 60% Stocks/ 40% Bonds |
Model Portfolio |
|
|---|---|---|
| Standard Deviation | ||
| Correlation(vs. S&P 500) | ||
| Worst 12 Months | ||
| Best 12 Months | ||
| Growth of $10,000 | ||
| Cumulative Return | ||
| Annualized Return |
Growth of $10,000 (January 1, 1990 - September 30, 2011)
Calculated by Hatteras Funds using information from PerTrac. The model portfolio is calculated using quarterly returns and rebalanced annually. Performance does not include fees, therefore returns for the portfolios would be lower due to the impact of fees and expenses not included here.
The indices used to determine the statistics for the portfolios shown were: Hedged Strategies: HFRI Fund of Funds Composite Index; Private Investments: Cambridge Associates, LLC, U.S. Private Equity Index; Stocks: S&P 500 Total Return Index; Bonds: Barclays Capital U.S. Aggregate Bond Index. The unmanaged indices are not available for direct investment. Past results are not indicative of future performance.
The hypothetical illustrations are not intended to predict the performance of any specific investment or security. No assumptions should be made that similar asset allocations will be profitable, suitable, or perform as indicated above. Allocations and their percentages should change based on an individual investor’s needs.
The past performance figures do not represent performance of any Hatteras Funds security and there can be no assurance that any Hatteras Funds security will achieve the past returns of the illustrative examples.
The HFRI Fund of Funds Composite Index is an unmanaged index that is an equal-weighted index that includes both domestic and offshore fund of funds. Funds included in the index invest with multiple managers through funds or managed accounts. The fund of funds manager has discretion in choosing which strategies to invest in for the portfolio. A manager may allocate funds to numerous managers within a single strategy, or with numerous managers in multiple strategies.
Standard & Poor´s (S&P) 500 Total Return Index is an unmanaged index consisting of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index, with each stock´s weight in the index proportionate to its market value.
The Cambridge Associates LLC U.S. Private Equity Index® is an end-to-end calculation based on data compiled from 899 U.S. private equity funds, including fully liquidated partnerships, formed between 1986 and 2011.
Barclays Capital U.S. Aggregate Bond Index is an unmanaged index comprised of U.S. investment grade, fixed rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and ten years.