How Advisors Can Prepare for Turbulent Times by Exploring a Risk Balanced Approach

Explore Catalyst FundsExplore Rational Funds

Most investors intuitively understand the benefits of diversification, but due to a lack of familiarity and perceived complexity with other asset classes, many rely solely on stocks and bonds. As we’ve seen during recent market downturns, these two asset classes don’t always move independently, potentially undermining their ability to provide truly diversified returns.

In our recent report The Guide to Building a Risk Balanced Portfolio for Volatile Markets, we:

  • Introduce the liquid alternatives landscape

  • Explain how allocations to alts could have prevented downturns in past markets for some investors

  • Help investors understand how to diversify their portfolio using data-driven, time-tested approaches.

    How Adding a Balanced Risk Strategy (Alternatives) Can Enhance a Portfolio

Data Source: Bloomberg LP and Catalyst Capital Advisors LLC. Based on monthly return data from 12/31/1999 to 12/31/2024. Stocks are represented by the S&P 500 TR Index; bonds are represented by the Bloomberg US Aggregate Bond Index; Balanced Risk Strategy is represented by 100% notional exposure to SG CTA Trend Index, 50% allocation to the S&P 500 and a 50% allocation to the Bloomberg US Short Treasury TR Index (to represent collateral for futures program). Rebalanced monthly. Past performance does not guarantee future results. See important disclosures at the end of this presentation, including with respect to the limitations inherent to hypothetical performance comparisons.

Click here to read the full report.

Latest

Navigating Multi-Factor Market Volatility: A Portfolio Manager’s Guide

Current market conditions present a complex web of interconnected risks that demand careful analysis and strategic positioning.

Markets Gone Wild: April 2025 HANDLS Monthly Report

April 2025 delivered a dramatic episode in what has already been a year marked by heightened volatility.

Short-Term Noise Can Lead to Long-Term Opportunity

If you only take one thing from today’s writing, take this: storms are a sideshow to sunnier days.

Navigating Tariff Tangles: January 2025 HANDLS Monthly Report

The recent shift in tariff policies has added a layer of complexity to the economic landscape, potentially influencing market sentiment and investment decisions.

Newsletter

Don't miss

Navigating Multi-Factor Market Volatility: A Portfolio Manager’s Guide

Current market conditions present a complex web of interconnected risks that demand careful analysis and strategic positioning.

Markets Gone Wild: April 2025 HANDLS Monthly Report

April 2025 delivered a dramatic episode in what has already been a year marked by heightened volatility.

Short-Term Noise Can Lead to Long-Term Opportunity

If you only take one thing from today’s writing, take this: storms are a sideshow to sunnier days.

Navigating Tariff Tangles: January 2025 HANDLS Monthly Report

The recent shift in tariff policies has added a layer of complexity to the economic landscape, potentially influencing market sentiment and investment decisions.

Private Markets: The Largest Mega Trend in Financial Services

There are several powerful mega-trends happening around the world. One of these trends is happening in the financial services industry and is still a game in the early innings.

Navigating Multi-Factor Market Volatility: A Portfolio Manager’s Guide

Current market conditions present a complex web of interconnected risks that demand careful analysis and strategic positioning.

Markets Gone Wild: April 2025 HANDLS Monthly Report

April 2025 delivered a dramatic episode in what has already been a year marked by heightened volatility.

Short-Term Noise Can Lead to Long-Term Opportunity

If you only take one thing from today’s writing, take this: storms are a sideshow to sunnier days.