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What Pros Say: Hedge And Look For Alternatives

Smart investors need to look at savvy alternatives—and in some cases that's anything but stocks.That's the verdict of some investment pros at Charles Schwab's 19th annual IMPACT conference of financial advisors in Boston this week.

"It's about bringing a new array of strategies to investors," Rick Lake, portfolio manager of Aston Lasso Alternatives Fund, told CNBC in a three-person round table discussion. Lake says investors are looking for alternative strategies, such as short selling, hedging and commodities.

Tom LaPointe, portfolio manager for the Third Avenue Focused Credit Fund, agrees, saying his focus is on "the alternative space", in areas such as distressed debt, high yield bonds.

"Investors are looking for income," says LaPointe, adding that investing in bonds is "condemning clients to 2-percent returns for the next ten years"

Thomas Meyer, CEO and Chairman of Meyer Capital Group Wealth Management, adds that his goal is to reduce risk for clients in the current environment.

"Individual investors don have any appetite for risk at this point," says Meyer, who. among other things, is trying to profit from the declining dollar and emerging market growth, while also emphasizing capital preservation.

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  • NEW YORK— They're hot, yet many investors have no idea what they do. These mutual funds go by a few names, and it doesn't help that some are inscrutable like "liquid alts," but they generally fall under an umbrella known as alternative mutual funds. Investors plugged a net $35 billion into alternative mutual funds over the last 12 months, according to Morningstar.

  • Total U.S. money market mutual fund assets fell $2.18 billion to $2.56 trillion for the week that ended Wednesday, according to the Investment Company Institute. Assets in the nation's retail money market mutual funds fell $2.84 billion to $896.27 billion, the Washington- based mutual fund trade group said Thursday.

  • WASHINGTON, July 23- U.S. regulators adopted moderate reforms for money market mutual funds on Wednesday, in what amounted to a compromise that aims to balance the need to reduce the risk of runs on the funds while still protecting the product's utility for investors.

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