Coombs: Alternatives managers now the best route to alpha

David Coombs, head of multi-asset investments at Rathbone Unit Trust Management, says the hunt for alpha must turn to alternatives as the beta run draws to a close

After several years of almost indiscriminately rising developed stock markets, the 'beta run' appears to be grinding to a halt.   As equity markets begin to diverge and prospects for different markets – and more importantly within markets – become less uniform, it will be the alpha-generators that drive future outperformance. It is in this space alternative strategy managers come into their own. There are many reasons behind the improved investment environment for alternative strategies currently, not least the divergent monetary policies around the globe.   As the world awaits the...