Alternatives Research | The Alternatives Landscape Fall 2019
Global capital market returns rebounded sharply during the first half of 2019, due in part to a more dovish Fed and bouts of optimism regarding a resolution to the U.S.-China trade dispute. The S&P 500 posted its best start to the year since 1997 and a sharp drop in interest rates led to the best first half of the year for the U.S. bond market since 1995. Diversifying asset classes such as alternatives also posted positive results to begin 2019. Hedge funds outpaced bonds but failed to match the rally in global public equities, while commodities and commodity-related investments were positive, albeit mixed. Illiquid strategies, including private equity and private real estate, generated favorable results on an absolute basis for the one-year ending March 31, 2019, with private equity outpacing more liquid peers.