ConstructinganOptimalAlternativesPortfolioWithoutRealEstate,HedgeFundsorTraditionalPrivateEquity:AnEfficientFrontierApproach
Constructing
an
Optimal
Alternatives
Portfolio
Without
Real
Estate,
Hedge
Funds
or
Traditional
Private
Equity:
An
Efficient
Frontier
Approach
This report applies mean-variance optimization and the efficient frontier framework to construct efficient alternative investment portfolios. The findings challenge conventional allocation models by showing that farmland, private credit, timberland, and lower middle market private equity form the most efficient core portfolio, while traditional private equity, hedge funds, and private real estate offer limited incremental benefit once risk and correlation are accounted for. The paper underscores Omnigence’s commitment to disciplined, data-driven portfolio construction and provides a roadmap for investors seeking to optimize alternative allocations in today’s evolving market environment.