2015 Alternative Investment Outlook

The alternative investment industry looks ahead to 2015 as the broader market compiles an impressive performance streak. The performance of alternatives looks relatively weaker, causing some to question the long-term fundamentals of the industry. Others are pointing out that the very appeal of alternatives is that they are intended to be inversely correlated to the broader market and that it would be more of a concern if alternative investments were performing in lockstep with the broader indices.

From Deloitte’s perspective, with a view of the industry across organisations of many sizes and shapes, there are both challenges and opportunities. The prevailing sense is that the alternative industry is strong overall, but rapidly evolving amidst existing and emerging complexities. In many ways, the alternatives industry is still among the most nimble and adaptive sectors of the financial industry, producing tremendous innovation across many aspects of the business.