Hightower Podcast: Collective Wisdom

A discussion of the proper use of alternatives and the decision to give up liquidity late in the market cycle highlighted the vastly different strategies investors can follow when it comes to bringing non-correlated assets into the fold. Jeremiah Riethmiller of Sarian Strategic Partners suggested keeping 10 to 15 percent of a portfolio in alternatives, with about half of that money in issues that remain liquid, the more traditional managed-futures, market-neutral or absolute-return strategies. Steve Tresnan of Tresnan Ferst Wealth Advisors, by comparison, was willing to put up to half of assets into alternatives, and was willing to go much more illiquid, using private-equity investments along with the traditional alternatives to build a more endowment-like all-weather portfolio.