Return Analysis
Evaluates expected return assumptions across public and private asset classes.
Resources / Portfolio Construction
ALTS Portfolio Modeling™
Research-driven portfolio construction beyond traditional markets.
The ALTS Portfolio Modeling™ framework combines public markets, income strategies, and alternative investments into a structured methodology designed to evaluate portfolio risk, return, and diversification characteristics.
Research Foundation
Beyond Wall Street
The Rise of Private Markets and the New Investor Playbook
The ALTS Portfolio Modeling™ framework draws upon years of financial management teaching experience, alternative investment research, and practical work across private markets and portfolio construction. Concepts reflected in the methodology are further explored in Beyond Wall Street, which examines the evolution of private markets and their growing role within modern portfolios.
How ALTS Portfolio Modeling™ Works
The framework evaluates portfolio construction across multiple dimensions rather than focusing solely on projected return.
Volatility Analysis
Measures estimated variability of portfolio outcomes over time.
Correlation Modeling
Analyzes how asset classes interact with one another rather than evaluating each investment in isolation.
Income Characteristics
Incorporates income-producing investments and reinvestment assumptions.
Portfolio Efficiency
Evaluates the relationship between expected return and portfolio risk.
Sample Portfolio Illustration
Illustrative example only.
Traditional Portfolio
Public Equity — 60%Fixed Income — 40%
Expected Return8.4%
Estimated Volatility10.5%
VS.
ALTS Portfolio Model™
Public Equity — 45%Fixed Income — 30%Alternative Investments — 25%
Featured Alternative Allocation:
MAG Capital Partners Industrial Fund III
Expected Return10.25%
Estimated Volatility9.0%
Long-Term Growth Illustration
Hypothetical growth of a $1,000,000 portfolio.
Hypothetical illustration only. Assumptions do not represent actual investment performance.
Year
Traditional Portfolio
ALTS Portfolio Model™
0
$1,000,000
$1,000,000
5
$1,500,000
$1,630,000
10
$2,240,000
$2,650,000
15
$3,360,000
$4,320,000
20
$5,020,000
$7,040,000
Diversification and Risk Profile
Diversification benefits may help reduce overall portfolio volatility.
Standalone Risk Assumptions
Estimated volatility by asset class.
These represent estimated standalone volatility before diversification effects are applied.
Portfolio-Level Volatility
After diversification effects.
Diversification Effect
Public
MarketsFixed
IncomeAlternative
Investments
MarketsFixed
IncomeAlternative
Investments
Lower correlation between asset classes may reduce overall portfolio volatility while maintaining expected return potential.
Featured Alternative Investment Research
MAG Capital Partners Industrial Fund III
Industrial Sale-Leaseback Strategy
- Industrial real estate exposure
- Long-term lease structures
- Income-oriented cash flow profile
- Private market diversification
- Featured sample allocation in the ALTS Portfolio Model™
ALTS Portfolio Modeling™ is provided for educational and illustrative purposes only. Portfolio allocations, return assumptions, volatility assumptions, correlation assumptions, and projected outcomes are hypothetical and do not represent actual investment performance. This page does not constitute investment advice, a recommendation, or an offer to buy or sell securities. Past performance does not guarantee future results. Alternative investments involve risk, including illiquidity, limited transparency, valuation uncertainty, and potential loss of capital.