Alternative Investments: Bringing Balance Into Portfolio Strategy

Concentrated markets, shifting rate policy, and rising correlations have eroded the diversification a 60/40 allocation once delivered — all while the alts landscape has evolved. Explore how alternatives can deepen diversification and support long-term client outcomes. 

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Alternative Investments, An Essential Element of a Balanced Portfolio

Increasingly, alternative investments are earning a seat at the table as strategic components that solve diversification challenges traditional asset classes alone can't.

In this white paper, you'll learn:

  • Why the traditional 60/40 of stocks and bonds is fading
  • How to weigh the strategic considerations of alternative investments, from return drivers and risk to liquidity and tax
  • Ways to navigate major alts categories, including hedge funds, private equity, private credit and real assets
  • How to build portfolios around client needs, not asset labels

  

The New Balance for a New Market

The shift to alternatives isn't theoretical — it's already measurable, and the stakes are real. So is the potential.

60/40, Reconsidered pie chart showing 10% traditionally held as bonds
Advisor Opportunity millennials vs boomers alt opportunity

"Robust portfolios start with client goals. Alternative investments can expand the toolkit available to help pursue those goals."

Kristian Kerr

Head of Macro and Investment Strategy, LPL Research

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Take the Next Step to Better Position Clients

Get the full breakdown — why the 60/40 is losing balance, which alternatives fit which goals, and how to put them to work for clients.

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1. Goldman Sachs Asset and Wealth Management, “Opening The Door To Alternatives”, October 2025

Disclosures

For Financial Professional Use Only.

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.​

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