Mutual fund managers have been increasingly gravitating toward alternative investments as a way to boost returns and compete with hedge funds. By some estimates, alternative investment funds could soon account for as much as 10% of assets in mutual funds.

But according to TIAA-CREF Chief Investment Strategist P. Brett Hammond, that should be even higher, possibly between 20% and 60% of a mutual fund portfolio's composition.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.