To some observers, portfolio allocations to alternative investments should be modest, perhaps in the area of 5% to 10% or maybe slightly more.

That’s not the case with Scott Schweighauser, president of Chicago-based Aurora Investment, which manages hedge fund portfolios and is an affiliate of Natixis Global Asset Management. “Funds of hedge funds should be a core allocation for investors,” Schweighauser says, “and the bigger the better. That allocation should be at least 20% of the portfolio, I believe."

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access