Finding Balance: Growth, Income and Liquidity

Summary

Troy Gayeski outlines three key challenges for investors: putting cash to work, complementing stretched equity valuations, and replacing fixed income. He recommends alternative investments, especially evergreen vehicles, and notes commercial real estate is bottoming with positive inflows.

• Three main challenges: cash deployment, equity complement, fixed income replacement.
• US equities have no earnings problem but valuations are extremely stretched.
• Commercial real estate has bottomed and is seeing renewed inflows.
• First-time alternative investors should consider cash/fixed income replacement via evergreen vehicles.
• Evergreen funds offer monthly subscriptions and quarterly redemptions, avoiding long lock-ups.
• Troy is optimistic about forward returns in commercial real estate.
• The discussion focuses on portfolio construction with alternatives.
• Implementation advice: start with income-focused alternatives in an evergreen structure.