Why this investing style could work when stocks and bonds struggle

Investors are always wracked by choice - a choice between different styles of investing, different asset classes, and even different geographies. That choice makes an investor's job difficult because it forces them to decide between investing in one option over the other. Unless, of course, there is a way for investors to get access to a slew of styles, asset classes, and geographies all at once.

Well, the opportunity exists - and it is called a 'multi-strategy'. It invests in everything from long/short equity strategies to bond arbitrage and even big bets linked entirely to macroeconomic data releases. 

While the multi-strategy approach is not for the short-term investor, it can help insulate losses when conventional assets like bonds and stocks are struggling at the same time. It also opens you up to other ways of making money previously guarded by the world's most elite hedge funds. Does this sound familiar, relevant, and timely to anyone? 

To explain how multi-strategy investing works, the opportunities, and the risks involved, we sat down recently with David Elms, Janus Henderson's Head of Diversified Alternatives. Elms is joining us as part of Livewire's annual Alternatives in Focus series, which takes a closer look at the opportunities and ideas that can be found in the growing alternative investments space. 

Timestamps

• 0:00 - Intro
• 0:44 - How would you explain your investing style?
• 1:37 - What is a multi-strategy approach to investing?
• 3:02 - How do you determine which strategies to use in which market environments?
• 4:19 - What is the biggest benefit of investing in a multi-strategy fund like yours?
• 6:03 - When do you deploy "risk-off" strategies?
• 7:18 - Talk to some of your key trades in the last 12 months.
• 8:44 - Why does tighter monetary policy pose a challenge to your investing style?
• 9:55 - David's view from the top

See alternatives in a different light

To perform differently from the market, you have to invest differently. You can find further information on the Janus Henderson Global Multi-Strategy Fund here, or via the Fund Profile below. 

Managed Fund

Janus Henderson Global Multi-Strategy Fund

Alternative Assets

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