Alternatives may offer investors the potential for downside risk mitigation and attractive risk-adjusted returns across market cycles. Importantly, they may also offer unique diversification benefits amongst a broader asset allocation by providing uncorrelated returns to broader risk markets.
Since entering the alternatives space in 2002, PIMCO has provided clients with access to non-traditional investment strategies. More than 100 investment professionals worldwide oversee hedge fund and opportunistic/distressed strategies, including global macro, credit relative value, volatility arbitrage, and distressed mortgage and corporate credit opportunities.
PIMCO’s approach to alternatives embodies a time-tested macroeconomic investment process and a strong risk management culture with detailed asset-level credit analysis. By using investment vehicles with liquidity and volatility profiles matching those of their underlying investments, we believe these strategies permit investors to access sources of return typically unavailable in traditional strategies.
As of 30 September 2015, PIMCO managed approximately US$23.7 billion in alternative strategies, including US$15.6 billion in hedge funds and US$8.1 billion in opportunistic funds.