While the confluence of geopolitical turmoil, increased inflation, bearish financial markets, and increased regulatory scrutiny have fueled uncertainty, the M&A arbitrage opportunity set remains attractive.
With inflation surging, interest rates rising from generational lows, and increasing stock market volatility, it’s time to rethink traditional stock and bond allocations.
Alternative investment strategies aim to provide lower volatility, lower market risk, and low or negative correlation to traditional markets. With differentiated sources and patterns of returns, income, and diversification, alternatives may provide the potential to protect traditional portfolios against adverse market conditions.
Potential Benefits of Alternative Investments
Differentiated Source and Pattern of Returns
Potential for Lower Volatility
Lower or Negative Correlation
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Thought leadership from Duff & Phelps
Inflation has become a greater threat to portfolios than it was in the previous decade. Here’s a look at potential ways investors can hedge against such risk.
Merger arbitrage is an alternative investment strategy offering traditional stock and bond investors the potential to create a more efficient and diversified portfolio, targeting both steady gains and minimization of drawdowns through up and down markets alike.
Please consider a Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other information about any Virtus Fund, contact your financial representative, call 800-243-4361, or visit virtus.com for a prospectus or summary prospectus. Read it carefully before investing.
Not insured by FDIC/NCUSIF or any federal government agency. No bank guarantee. Not a deposit. May lose value.
The value of securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short or long term.
Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio, or that diversification among different asset classes reduces risk.