Top of Mind: Next-generation diversifiers for a changing market landscape

• Given shifting economic and market conditions, the traditional rules of diversification won’t always apply, and investors should consider a broader set of strategies to protect their portfolios. • Increasingly, hedge funds are being used as a portfolio diversifier — particularly those that aim for a market-neutral profile, such as multi-strategy funds. • It may be time to consider inflation-hedging strategies, including dynamic and diversified approaches that evolve with the economic landscape. • Even if fixed income is not as effective at offsetting equity risk at times, the asset class...