Historical data shows alternative allocations outperform during stagflationary cycles. It's worth checking out what Buffett and his co-investors are doing. But while greater access to specialized assets may deliver higher returns and improve diversification, the trade-offs for investors can include less transparency, higher risks, illiquidity and fees. The latest Q2 2024 portfolio flows indicate that hedge funds and family offices are increasing allocation to "investing in alternatives" like infrastructure and venture capital. Bloomberg data suggests demand is driven by slowing global manufacturing PMI and tighter credit conditions, boosting appetite for long-duration private market strategies.
