Author Topic: GMO Quarterly Report  (Read 1561 times)

no_free_lunch

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GMO Quarterly Report
« on: October 17, 2016, 07:50:05 PM »
In one of GMO's newer quarterly reports, they discuss what they see as the advantage of alternative assets.   From what I understand they are referring to hedge funds.   My question is, what are the better etf options for investing in alternative assets, if any?  Is there anything remotely equivalent to berkshire/fairfax, or markel, or even leucadia?

Quote
The charm of alternatives today is that we believe they should perform similarly in either the
temporary or permanent shift scenario, and there are almost no other assets with expected returns
above cash for which that is the case. The problem with alternatives is that they are more complicated
to manage than traditional assets, generally have higher fees associated with them, and require more
oversight. Normally, those problems are enough to make them less appealing than traditional risk
assets such as equities and credit. Today, however, they seem well worth the extra effort. Their
generally disappointing performance over recent years, rather than a sign to dump them once and for
all, should probably be recognized as a signal of their potential utility in the market environment we
face in the coming years.

https://www.gmo.com/docs/default-source/public-commentary/gmo-quarterly-letter.pdf