Omnigence’s Q3 update, Alternative Alpha Outlook, examines a pivotal shift in global macro dynamics: the weakening reliability of the traditional equity–bond negative correlation. As inflation persists near or above key thresholds, the historical diversification benefit of the 60/40 portfolio becomes increasingly inconsistent, with equities and bonds exhibiting more frequent positive correlation. Using multi-decade data, the report illustrates how inflation regimes have shaped real returns, drawdowns, and portfolio resilience across cycles.
Against this backdrop, the update highlights how alternative strategies, particularly those with structural inflation-hedging characteristics, may provide more robust diversification in today’s environment. The report also includes quarterly updates from our partner platforms: Arvore’s continued operational scale-up, Veripath’s expanding farmland portfolio and stable performance metrics, and Genivent’s activities in secondaries and liquidity provisioning.