Alternative investments are investments in assets outside of traditional stock and bond markets.
Alternatives provide valuable diversification opportunities and typically offer a risk/return profile that is not highly correlated to either stocks or bonds. This can lead to potentially higher returns while lowering overall portfolio risk. BNY Mellon’s alternative investment capabilities include the following strategies:
Hedge Funds
BNY Asset Management provides fund-of-hedge fund strategies through Ivy Asset Management, a wholly-owned subsidiary of The Bank of New York Mellon and well respected hedge fund manager worldwide. Ivy’s expertise includes absolute return/market neutral, long/short equity and event driven/special situation strategies. Ivy can also combine various hedge fund strategies – customizing portfolios to meet the needs of the client.
- Market Neutral -- Attempts to exploit pricing inefficiencies and reduce market risk by purchasing undervalued securities and selling overvalued ones.
- Special Situations -- Seeks to capitalize on market misconceptions regarding a company’s intrinsic value and future business prospects.
- Long/Short Equity -- Attempts to benefit from mispriced securities based upon rigorous and disciplined fundamental analysis.
Alternative Fixed Income
BNY Asset Management offers alternative fixed-income opportunities through the Alcentra Group, a subsidiary of The Bank of New York Mellon. Alcentra, which maintains investment offices in Los Angeles and London, specializes in sub-investment grade debt and structured credit securities. Through extensive deal sourcing and intensive credit analysis, Alcentra seeks to generate strong risk-adjusted returns, while preserving capital.
- Structured Debt -- A strategy anchored in senior secured floating rate debt, is designed around a steady carry with event-driven opportunistic investments.
- European Debt Opportunities -- Invests in a broad spectrum of European debt opportunities, consisting primarily of performing, non-investment grade, floating rate and senior secured bank loans. Other investments include mezzanine loans, high-yield bonds and credit default swaps.
Real Estate
Urdang Capital Management, a subsidiary of The Bank of New York Mellon, utilizes a value-oriented investment process to uncover real estate opportunities that deliver strong, risk-adjusted returns.
Urdang Securities Management, also a subsidiary of The Bank of New York Mellon, manages Real Estate Investment Trusts (REITs) and commingled real estate funds that invest directly in commercial properties.
- Domestic REIT -- Designed to anticipate market turning points and to position investors’ capital to benefit from the cyclical nature of U.S. real estate prices.
- Global REIT -- Invests in a portfolio of real estate securities that are diversified across continents, countries, sectors and correlations.
- International REIT -- Invests in a portfolio of real estate securities that are diversified across continents, countries (non-U.S.), sectors and correlations.
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Private Commingled Real Estate -- Offers direct investments in commercial properties. The strategy seeks to generate strong, risk-adjusted returns by creating and enhancing property income streams and increasing property value.
