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Fidelity Alternative Investments Beyond the Traditional
Liquid Alternatives
Liquid alternatives include a broad range of strategies across asset classes and investment styles. These funds can fulfill a variety of roles in investor portfolios, offering opportunities for return enhancement, diversification* or downside protection.
For investors looking for diversification beyond traditional asset allocation
Most traditional mutual fund strategies invest with the expectation to hold securities over the long term, while alternative strategies typically invest in public markets or in derivatives tied to performance of those markets. Liquid alternatives usually have the flexibility to take either long or short positions; the latter seeking to benefit from declining asset values. As a result, liquid alternatives may have different risk/return profiles than traditional investments, with varying levels of exposure to the public markets, as well as a range of systematic and idiosyncratic risks.
Enhancing Returns
Strive to deliver favorable risk adjusted return regardless of market cycles and shorter term dynamics.
Diversifying
Strive to provide low correlation to traditional investments such as stock and bonds.
Defending
Strive to provide defensive portfolio characteristics relative to equity dominated portfolios, potentially hedging downside risk.
*Diversification does not ensure a profit or guarantee against a loss.
Why a liquid structure?
Liquid alternatives provide an easily accessed investment structure—mutual funds and exchange-traded funds (ETFs)—while also providing daily pricing and liquidity, which makes them more attractive to a broader spectrum of investors.
Browse all liquid alternative funds
Fidelity offers liquid alternatives to meet a variety of different portfolio goals.
Commodity interest trading involves substantial risk of loss. Past Performance is not indicative of future results.
Alternative funds seek to accomplish the fund's objectives through non-traditional investment strategies that offer exposure beyond traditional stocks, bonds, and cash. Alternative funds may not perform as intended in various market conditions or market scenarios. There can be no assurance that an alternative fund's stated objectives will be met.
Alternative funds seek to accomplish the fund's objectives through non-traditional investment strategies that offer exposure beyond traditional stocks, bonds, and cash. Alternative funds may not perform as intended in various market conditions or market scenarios. There can be no assurance that an alternative fund's stated objectives will be met.
FLYER
What are some common types of liquid alternative funds?
Hedge-fund-like strategies are non-traditional investment strategies that use a range of different approaches to managing investments, many with the goal of generating returns that are uncorrelated to traditional asset markets. Or they may have different risk profiles than traditional investment strategies.
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INSIGHTS
Alternative Investments and Their
Roles in Multi-Asset Class Portfolios
Roles in Multi-Asset Class Portfolios
Many investors look to alternatives to broaden the investment opportunity set and help enhance a portfolio’s returns, manage downside risk, and improve diversification.
PRODUCTS & SOLUTIONS
Alternatives
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