By including SLS’s to your portfolio, risk-adjusted returns should improve and overall portfolio volatility risk will be reduced with the addition of a non-correlated asset class to your asset allocation.


The traditional stock and bond asset allocation methodology is no longer a balanced approach. 
As interest rates remain suppressed, insufficient returns from fixed-income investments have negatively distorted the risk premium attached to the traditional model.

In the chase for safe yield, SLS Strategies can reduce overall portfolio volatility and stabilize returns:

  • Market dislocations and regulatory pressures create opportunities to diversify into non-traditional alternative sectors
  • SLS Strategies may offer better relative return performance with lower correlation to financial markets
  • Investors stand to harvest the benefits of an illiquidity premium for the portion of their assets allocated to SLS Strategies that would otherwise be allocated to fixed income investments

A well-constructed portfolio, diversified with SLS Strategies, can provide attractive returns and reduce downside risk while offering a desirable investment hedge, inflation protection and lower overall portfolio volatility.