Stop reading. Start learning.
There’s no end to the words you can read about alternative investing. And, at William Blair, we can go just as long and multisyllabic and technical as everyone else. But, advisors tell us that they want simple, direct answers to their questions about alternative mutual funds, also called liquid alternatives.
You have questions and we’re committed to answering them. We start this series with Brian Singer, well known for his pioneering advances in the active management of multi-asset and currency portfolios and leader of the William Blair Macro Allocation Fund portfolio management team. These brief and to-the-point videos should prep you with what you need to know.
Content is provided for information purposes only and is not intended as investment advice nor is it a recommendation to buy or sell any particular security. Any discussion of particular topics is not meant to be comprehensive and may be subject to change. Any investment or strategy mentioned herein may not be suitable for every investor. Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Past performance is not indicative of future results. Information and opinions expressed are those of the presenter and may not reflect the opinions of other investment teams within William Blair & Company, L.L.C.’s Investment Management division. Information is current as of February 3, 2014 and subject to change without notice.
Alternative investments may use investment techniques and financial instruments that are considered aggressive and typically involve a high degree of risk. Such techniques may include short sales or other strategies that are intended to provide inverse exposure to a particular market or other asset class, as well as leverage and may subject a portfolio to potentially dramatic changes (including losses) in a portfolio’s value. Alternative investments commonly include the use of derivatives, or investments where the investor does not own the underlying asset, but instead makes a bet on the direction of the price movement of the underlying asset. Examples of derivatives include options, swaps, futures and forward contracts. Derivatives are generally used as an instrument to hedge risk but also can be used for speculative purposes. There are various types of risks associated with derivatives such as market risk, liquidity risk, credit risk, legal risk and operations risk. These investments are intended for sophisticated investors who are willing to bear the loss of their entire investment and may not be suitable for all investors.
The Fund involves a high level of risk and may not be appropriate for everyone. You could lose money by investing in the Fund. There can be no assurance that the Fund’s investment objective will be achieved. The Fund is not a complete investment program and you should only consider the Fund for the alternative portion of your portfolio. Separate accounts managed by the Advisor may invest in the Fund and, therefore, the Advisor at times may have discretionary authority over a significant portion of the assets invested in the Fund. In such instances, the Advisor’s decision to make changes to or rebalance its clients’ allocations in the separate accounts may substantially impact the Fund’s performance. The Fund is designed for long-term investors.
The Fund may use investment techniques and financial instruments that may be considered aggressive—including but not limited to the use of futures contracts, options on futures contracts, securities and indices, forward contracts, swap agreements and similar instruments. Such techniques may also include short sales or other techniques that are intended to provide inverse exposure to a particular market or other asset class, as well as leverage. These techniques may expose the Fund to potentially dramatic changes (losses) in the value of certain of its portfolio holdings.
Investments are subject to a number of other different types of risk, including market risk, asset allocation risk credit risk, commodity risk, counterparty and contractual default risk, currency risk, and derivatives risk. For a more detailed explanation and discussion of these risks, please read the Fund’s Prospectus.