4 myths of alternative investments 

In this report we dissect four common investment myths about alternative investments that are currently making their rounds.

There is more to the discussion around alternative investments than the headlines would indicate. Investing in alternatives is a complex pursuit. But if implemented correctly, they can be additive to investor portfolios.

Mercer has invested across alternative investments – defined as private asset classes and hedge funds – for over 30 years. We have compounded years of data and live insights, and we will use that background here to dissect four common misconceptions about alternative investments that are currently making their rounds.

These myths are:

  1. Private debt is oversaturated
  2. Private equity returns are dependent on low interest rates
  3. Private real asset strategies only provide an inflation hedge 
  4. Hedge funds underperform

At Mercer, our team of alternative investments specialists are dedicated to helping you create a portfolio that aligns with your organization’s investment objectives. With our extensive knowledge, deep expertise, and global scale and resources, we can provide you with access to a wide range of alternative investments tailored to your specific needs.

By partnering with Mercer, you gain access to a wealth of experience and a flexible approach that can accommodate both first-time investors in alternative investments and those with established portfolios. Whether you’re exploring private debt or other alternative investments, our team can guide you through the process and help you achieve your investment goals. Take the first step towards constructing a successful hedge fund portfolio by contacting a Mercer consultant today. We are ready to assist you in navigating the complexities of alternative investments and creating a strategy that fits your unique requirements.

If implemented correctly, alternatives help investors build more efficient portfolios. However, there are many horror stories associated with failed alternative investments.

Myth: Private debt is oversaturated

Myth: Private equity returns are dependent on low interest rates

Myth: Private real assets provide nothing more than an inflation hedge

Myth: Don't invest in hedge funds, they underperform

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