Post by AlternativeSoft

The Strait of Hormuz has been effectively closed for weeks. The International Energy Agency (IEA) has called it the largest oil supply disruption in history. Oil above $100/barrel. European natural gas up 50%. The European Central Bank warning of stagflation across Germany and Italy. South Korea's Kospi posting its worst-ever single trading day. And yet — some portfolios are navigating this with relative calm. Others are not. The difference isn't luck. It's portfolio construction. When inflation and energy prices surge simultaneously — the stagflationary scenario now playing out — equities and bonds sell off together. The 60/40 diversification assumption collapses. The portfolios holding up are those with genuine exposure to macro hedge funds, CTAs and multi-strategy alternatives. Not by coincidence. By design. In our latest thought leadership piece we examine: → Why traditional multi-asset portfolios are structurally exposed to supply-side inflationary shocks → How discretionary macro and CTA strategies have generated resilience where passive allocations cannot → What scenario modelling across different hedge fund allocation weights shows about drawdown reduction → The analytical toolkit that separates prepared allocators from reactive ones The central lesson isn't that geopolitical risk was unpredictable. It was always there. The question is whether your portfolio infrastructure was built to account for it. 🔗 Read the full article: https://lnkd.in/eSZctsJB BlackRock Goldman Sachs J.P. Morgan Wealth Management Fidelity International Barclays Hedgeweek® #HedgeFunds #PortfolioConstruction #EnergyMarkets #InstitutionalInvesting #GeopoliticalRisk #AlternativeInvestments #MacroInvesting #RiskManagement #StraitsOfHormuz #OilPrice #Stagflation #FamilyOffice #PensionFunds #Endowments #AlternativeSoft #FundOfFunds #PortfolioRisk #CTAFunds #MultiStrategy #AssetAllocation