Liquid Alternatives Target Returns Without Sacrificing Liquidity

GMO argues that liquid alternatives can combine return potential, diversification and daily liquidity through a multi-strategy approach designed to limit dependence on traditional risk assets.

• The strategy targets cash +4–6% returns with limited beta and combines value, carry, quality and momentum across equities, currencies, rates, credit and volatility.
• Current opportunities include undervalued emerging-market currencies and a value-versus-growth dislocation.
• Each $1 invested captures roughly $2 of underlying strategy exposure, improving capital efficiency.

Explore the full report for the portfolio construction framework and evidence behind the liquid-alternatives approach.