Trends Watch: Alternatives: Substantial
EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.
This week, Elana talks to Jonathan Horton, Chief Investment Officer, NorthWest Quadrant Capital Management, LLC.
What is your outlook for alternatives?
Our outlook for alternatives is positive. It’s a substantial industry. There are various ways you can measure the size of the industry but the Alternative Investment Management Association (AIMA), the industry’s peak body, sizes the hedge fund industry over $3 trillion. The trends of growth continue to be positive and there is various evidence supporting this. For example, BlackRock is dedicating resources to increasing the size of its alternative investments group. In addition, we seeing strong interest from clients for various different investment strategies, so the outlook is very good.
What is your outlook for the economy?
We entered 2018 where the consensus was for coordinated growth globally. We finished 2018 where the consensus views were wrong. Now we are in 2019 and the general consensus is there is a possibility of a recession on the horizon. The U.S. is relatively strong and will maybe muddle through, but there are risks. Other parts of the world are slowing at various rates. Parts of Europe are already in a recession and China has slowed considerably. You will see strategies that will do well in this environment, such as currency and global macro strategies.
What keeps you up at night?
After a long day in the office, I sleep pretty well especially if the Golden State Warriors win. I’m in the business of risk management and I position portfolios, in a highly diverse way allowing for the natural volatility of the business cycle, including recession.