- Advertisement -
- Advertisement -

Carneo’s Views on Alternative Assets

- Advertisement -

Stockholm (HedgeNordic) – Alternative assets provide investors with useful diversification to lower the risk of volatility in their portfolios, helping them achieve better risk-adjusted returns, says Roger Johanson (pictured), Head of Alternatives at multi-boutique asset management group Carneo.

Johanson and his team at Carneo’s Alternative Solutions arm offer Nordic institutional investors access to alternative asset managers in private equity, real estate and hedge funds. Defining alternative investments in an interview with VA Insights, Johanson says that the asset class includes everything “that is not a traditional investment.” Whereas “many people think of infrastructure, real estate and private equity,” alternative assets “can also include investments in everything from cryptocurrencies to art and film production.”

With the number of listed companies declining and with bonds and equities expected to produce lower returns than in the recent past, Johanson sees clear benefits to adding alternative asset classes in investor portfolios. Looking at the extensive menu of investment opportunities in the alternatives space, Johanson points out that “globally, private equity is growing very strongly and will be the dominant asset class in the space.” A contributing factor for this development represents “the increased regulatory requirements and thus risks that are imposed on listed companies,” argues Johanson.

Discussing the obstacles associated with investing in alternatives, Johanson reckons that alternative asset classes are “capital intensive and expensive.” Moreover, investors need to consider these asset classes as investments for the very long term, which could entail “experiencing negative returns for a number of years before receiving the expected benefits.” Whereas Johanson considers that alternative assets do not exhibit higher risk than other traditional investments, he emphasizes that “it is important to have a diversified portfolio” to make the most of this asset class.

When pondering on the future of alternative investments, Johanson is confident that the asset class will continue to grow going forward. “The recipe for success is to make sure investors reach out to the best managers and realize that it takes time to build a portfolio that investors understand and can manage,” concludes Johanson.

close

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest

Most Popular This Week

Request for Proposal

- Advertisement -

Latest Articles

Month in Review – November 2022

Stockholm (HedgeNordic) – After a difficult end to the third quarter, Nordic hedge funds are enjoying a strong fourth quarter. The Nordic hedge fund...

A COO for Protean’s Growth Journey

Stockholm (HedgeNordic) – The founding duo of the newly-launched Swedish hedge fund Protean Select has appointed Daniel Mackey as the Chief Operating Officer of...

Tor Svelland’s Fund Tops the Ranking

Stockholm (HedgeNordic) – One month to the end of the year, Svelland Global Trading Fund of Norwegian Tor A. Svelland takes the top spot...

Will Equities Bottom Out Like in 1974?

Stockholm (HedgeNordic) – Growing signs that price pressures are easing suggest inflation may have peaked, which has some market participants wondering whether equity markets...

Rising Mortgage Rates and Falling Stock Prices

Copenhagen – (Jesper Rangvid): During 2022, mortgage rates have risen and stock prices have fallen, both negatively influencing households’ consumption possibilities. But how much...

The Spectacular Unspectacular 20th Anniversary

Stockholm (HedgeNordic) – Reaching the 20th anniversary in the often short-lived and fast-paced hedge fund world is quite an achievement. In fact, some activity...