The allure of the outlier: A framework for considering alternative investments

October 28, 2015


The global low-yield environment seen in recent history has some advisors considering a broader range of portfolio solutions for clients, including the use of alternative investments. This, coupled with institutional endowments such as Harvard and Yale using alternative investments to noted success, helped spur significant growth in alternative investment assets for the period 2005–2013.

In this research paper, Vanguard's Daniel Wallick, Douglas Grim, Christos Tasopoulos, and James Balsamo discuss the difficulties with analyzing private investments, their performance compared to public investments, and considerations to make when deciding whether to include private investments in a portfolio.

Use this paper to:

  • Understand some of the challenges regarding the analysis of private alternatives.
  • See how private alternative investments have performed compared to public markets.
  • Discover a thorough, bottom-up approach for determining whether to include private investments in a portfolio.
Additional materials


  • All investments are subject to risk, including possible loss of principal.

Our insights straight
to your inbox

Our insights straight to your inbox

Receive our latest Advisor's Digest
and commentary sent the
first business
morning every week.

A weekly digest of our latest research and commentary. Topics include the economy and markets, portfolio strategy, ETFs, and practice management.

Fund openings/closings, fund manager changes, dividend distributions, webinars, and other events you might want to know about.

Already registered? Log on to
manage your
email subscriptions.