ARTICLE
12 September 2016

Research Indicates Liquid Alternatives Will Benefit Post-Brexit

KL
Herbert Smith Freehills Kramer LLP

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A research paper from bfinance regarding Brexit impact found liquid alternatives will profit from increased dispersion tied to uncertainty at the stock and sector level. According to the paper, they have a low sensitivity to changes to GDP due to the diversity of strategies and return drivers.
United States Finance and Banking

A research paper from bfinance regarding Brexit impact found liquid alternatives will profit from increased dispersion tied to uncertainty at the stock and sector level. According to the paper, they have a low sensitivity to changes to GDP due to the diversity of strategies and return drivers. It also said they have a low sensitivity to inflation given LIBOR+ return targets and "the fact that relative value strategies typically hedge interest rates." According to the firm's head of risk and diversifying strategies, liquid alternatives and private debt will be of high relevance for asset owners in the coming months.

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