Financial advisors are shunning traditional diversification and portfolio construction for sexier alternative investment strategies, according to a study released today by Natixis Global Asset Management.

Most notably, the study found that a majority of advisors (63%) do not believe in, or are unsure of the value of, long-term buy-and-hold strategies, and 77% say their clients are questioning this approach as well. A majority of advisors (64%) say they are inclined to employ alternative investment strategies even for their mass-market clients, those with $200,000 to $300,000 in investable assets, and 49% said they regularly employ alternative investing strategies across their client base, with 79% saying they do so to improve diversification, 68% to reduce risk, 51% to enhance returns, and 42% to dampen volatility.

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