Equity market peak, alternative investors look to stay the course

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According to a Preqin report (reg. req.), 74% of investors in alternatives believe equity markets are at a peak, up from 61% at the end of 2018, and 6% believe markets are expanding. Alternative assets will be a vital part of many investors' approach to weather a market event, notes the report. For the asset classes operating in private capital, the majority of investors plan to hold course with their allocation strategy, in the expectation that these long-term strategies will weather a correction well. Sixty-four percent of investors in hedge funds, though, are turning to the asset class' defensive properties as their concerns around a correction grow. Among alternative assets, pricing concerns are also prevalent. While investors in real assets believe assets are fairly valued, private equity and real estate investors believe they are overpriced, and a correction in the pricing of these assets is due. Most investors do not anticipate a correction until 2020 or beyond.

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