How to Diversify With Alternatives in 2026

UBS maintains a positive view on alternative investments for 2026, emphasizing their role in diversification and return generation despite market volatility. The report highlights a rebound in hedge fund performance and strategic opportunities in private equity and infrastructure.

Key Takeaways

• 1.Alternative investments remain a valid source of differentiated returns and diversification despite market uncertainty.
• 2.Hedge funds showed a strong rebound in April 2026, with equity hedge managers achieving their best alpha month since 2009.
• 3.Private equity sentiment is positive due to attractive valuations, but investors should be wary of AI disruption and shifts in EV sector incentives.

Table of Contents

• Key message
• 01 Hedge fund performance rebounded in April, and can steady portfolios.
• 02 Private markets still offer opportunities for diversification, return generation, and income.
• 03 We see numerous paths to invest in alternatives, subject to careful risk management.
• New this week
• One liner
• Did you know?
• Investment view
• Non-Traditional Assets
• Risk information
• Generic investment research – Risk information:

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