Alternatives Offer Stability in Volatile Market
Alternatives Offer Stability in Volatile Markets
As everyone following the markets has seen, uncertainty from tariffs, trade policy changes, and geopolitical risks have caused significant volatility across traditional public markets, impacting both bond and stock holders. We believe these large swings highlight the importance of adding more diversifying assets into portfolios, particularly investments with low correlation to public markets.
Even before the market swings of early April, the last few years have seen considerable volatility and consistently low returns in the public debt market. The stock market was doing extremely well, but has retreated from peak valuations and now has a more uncertain future. Many investors have now lowered their return expectations for the next few years. The 2025 Picton Report highlights how shifting market dynamics challenge the classic 60/40 portfolio split, as traditional bonds no longer offer the expected defensive benefits they once did.
It's no surprise investors are seeking alternatives that can provide diversification as well as enhanced risk-adjusted returns. This has led many to explore private credit, real estate, infrastructure, and other non-correlated assets that offer diversification benefits by reducing reliance on traditional stocks and bonds. These asset classes can help stabilize returns under turbulent market conditions, as highlighted in The Picton Report.
Specifically, diversifying your portfolio with an allocation to an appropriate mix of alternatives can provide:
• Attractive yields at a time when bonds do not provide much income.
• Reduced portfolio volatility because the different asset classes are not correlated to each other or to public market securities.
Among those companies offering such alternatives, Arixa Capital offers open-ended funds that invest in loans backed by well-vetted residential projects in high demand markets. It’s a niche loan market which is sizable, but requires small-scale lending that larger private lenders tend to avoid and from which banks have retreated.
This year, Arixa is proud to celebrate the 15-year anniversary of its first fund. In today’s unpredictable market, a 15-year track record of delivering attractive income with zero down months and no principal loss feels almost unheard of—but that’s exactly what Arixa has delivered across its flagship funds.
Let’s discuss why diversification is such a strategically important move and how it may help you enhance income, manage volatility, and contribute to a more resilient investment approach during economic uncertainty.
 |
Connor Grosskopf, CFA Vice President, Investor Relations |
Sign Up
Join our mailing list to learn how Arixa can help with your investing goals.
By signing up, I agree that I want to receive news, updates, and event notifications from Arixa Capital. I consent to Arixa processing my personal data for these purposes and as described in the Privacy Policy. I understand I can withdraw my consent at any time.
Arixa Capital’s funds are only open to accredited investors as the term is defined by the Securities Act of 1933 under Rule 501 of Regulation D. Generally speaking an accredited investor is an individual who individually, or jointly with a spouse, has a net worth that exceeds $1 million, excluding the value of the primary residence. A person may also qualify as an accredited investor with an income exceeding $200,000, or $300,000 jointly with a spouse, for each of the two most recent years and a reasonable expectation of the same level of income in the current year. This webpage does not constitute an offer or solicitation to purchase interests in any Arixa-sponsored fund nor any related or associated entity. Any such offer or solicitation will be made solely through the respective fund’s governing documents and private placement memorandum or similar formal investment documentation, in strict accordance with the terms of all applicable securities laws and regulations.
This communication is for informational and discussion purposes only, and is intended as marketing. It should not be construed to provide any specific investment advice to you. Neither this communication nor any of the content therein constitutes, nor should it be construed to constitute, an offer to sell, or a solicitation of any offer to buy, interests in any investment opportunity or any investment strategy as described herein or elsewhere. Any such offer or solicitation may be made only by delivery of the appropriate governing and offering documents. Any decision to invest should be made only after carefully reviewing all relevant materials, conducting such inquiries and investigations as you deem necessary, and consulting with your own legal, accounting and tax advisors to make an independent determination of the suitability, risk and merits of investing.
Arixa Management, LLC (“Arixa”) is an SEC-registered investment adviser that provides investment advisory services and investment management services to a select set of pooled investment vehicles, joint venture vehicles, and special purpose vehicles. None of Arixa’s services are intended to represent a complete investment program.
These publications are for educational, illustrative and informational purposes only and do not represent investment advice or a recommendation of or as an offer or solicitation with respect to the purchase or sale of any particular investment strategy or investment product, or any Arixa investment products mentioned therein. Past performance is not indicative of future results.
Different types of investments involve varying degrees of risk, including possible loss of the principal amount invested. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Arixa), or any non-investment related content, will be profitable, equal any corresponding indicated historical performance level(s), be suitable for a client’s portfolio or individual situation, or prove successful. Nothing contained in these publications is intended to predict the performance of any investment. There can be no assurance that actual outcomes will match the assumptions or that actual returns will match any expected returns.
These publications do not constitute, and should not be construed to constitute, an offer to sell, or a solicitation of any offer to buy, interests in any Arixa-sponsored fund, which can only be made by means of an offering memorandum and other governing documents for the respective fund.
These publications do not take into account your particular investment objectives, financial situation or needs, should not be construed as legal, tax, financial or other advice, and are not to be relied upon in making an investment or other decision.
Certain information contained in these publications constitute forward-looking statements (including projections, targets, hypotheticals, ratios, estimates, returns, performance, opinions, activity and other events contained or referenced herein), which can be identified by the use of terms such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or other variations (or the negatives thereof) thereof. Due to various risks, assumptions, uncertainties and actual events, including those discussed herein and in the respective analyses, actual results, returns or performance may differ materially from those reflected or contemplated in such forward-looking statements. As a result, you should not rely on such forward-looking statements in making any investment decisions.
Certain information contained in these publications has been obtained or derived from unaffiliated third-party sources and, while Arixa believes this information to be reliable, neither Arixa nor any of its affiliates make any representation or warranty, express or implied, as to the accuracy, timeliness, sequence, adequacy or completeness of the information.
The information contained in these publications and the opinions expressed therein are those of Arixa as of the date of writing, are subject to change due to market conditions and without notice, and have not been approved or verified by the United States Securities and Exchange Commission (the “SEC”), the Financial Industry Regulatory Authority (“FINRA”), or by any state securities authority.
These publications are not intended for redistribution or public use without Arixa’s express written consent.
DISCLOSURES FOR LINKS
By clicking on any of the links on this webpage you will be leaving this webpage. These links may contain information concerning investments, products or other information. Arixa is not responsible for the accuracy or completeness of information on non-affiliated websites and does not make any representation regarding the advisability of investing in any investment product or vehicle. Importantly, Arixa is not compensated for linking you to any non-affiliated website. The material available on non-affiliated websites has been produced by entities that are not affiliated with Arixa. Descriptions of, references to, or links to products or publications within any non-affiliated linked website does not imply endorsement or recommendation of that product or publication by Arixa. Any opinions or recommendations from non-affiliated websites are solely those of the independent providers and are not the opinions or recommendations of Arixa, which is not responsible for any inaccuracies or errors.