Alternatives Research | The Alternatives Landscape Spring 2019
Markets declined sharply during the fourth quarter of 2018 due to lowered investor confidence, driven by an anticipated deceleration in global growth, combined with an escalation in the U.S./China trade rhetoric and a reduction in global monetary stimulus. The S&P 500 Index posted a negative calendar year return for the first time in nine years. Diversifying asset classes such as alternatives also posted negative results during 2018. Hedge funds declined approximately half as much as global public equities while commodity-related investments experienced a more precipitous decline. Illiquid strategies, including private equity and private real estate, generated favorable results on an absolute basis for the one-year ending September 30, 2018, with private equity even outpacing more liquid peers.