# Wealth Management Experts Reveal Alternative Investment Strategies for Portfolio Resilience

Diversifying beyond traditional equities and bonds using gold, commodities, and infrastructure assets.

- **Source:** [Daily Express :: Finance Feed](https://www.express.co.uk)
- **Published:** 2026-10-17
- **Topic:** [Finance](https://brifing.si/c/finance)
- **Original article:** <https://www.express.co.uk/finance/personalfinance/2257208/wealth-manager-explains-little-known-alternative-investments-rich-people-do>
- **On Brifing:** https://brifing.si/s/aadab2af-8c27-4d45-937b-0b911c709fe2

## Beyond Traditional Asset Classes

Wealthy investors frequently move beyond standard equity and bond portfolios to enhance resilience. Paul Denley, CEO of Oakham Wealth Management, notes that relying solely on shares is insufficient during market pressure. Alternative assets are intended to behave differently, providing a buffer when traditional market correlations break down during economic downturns.

## The 2022 Market Correlation Failure

The traditional relationship between stocks and bonds faltered significantly in 2022, as both asset classes declined simultaneously. This rare event left investors with limited protection, highlighting the necessity for assets that do not depend on identical economic forces. Diversification requires instruments that can hold value when conventional portfolios struggle.

## Gold as a Crisis Hedge

Gold serves as a unique alternative because it carries no credit or counterparty risk when owned directly. Historically, its price correlation with shares and bonds remains near zero. Denley suggests that holding a mid-single-digit to low double-digit percentage of gold can provide significant diversification benefits without dominating the overall strategy.

## Commodities Against Persistent Inflation

Broad commodities, including energy and industrial metals, offer protection when the cost of living surges. Because these prices often drive inflation, they may perform strongly while traditional assets suffer. However, commodities are highly volatile and lack dividend yields, making them better suited for inflation hedging rather than long-term growth.

## Infrastructure for Real Income

Infrastructure assets like toll roads and renewable energy projects provide income streams often linked to inflation. These long-lived assets remain essential throughout economic cycles, offering payments that can rise with prices. Investors should note that listed infrastructure still trades on stock exchanges and may decline during broader market sell-offs.

## Hedge Funds and Manager Skill

Market-neutral or multi-strategy hedge funds aim to generate returns through manager expertise rather than market growth. While some have successfully navigated downturns like 2008 or 2022, performance varies drastically across funds. High management charges and complex strategies require careful selection, as these assets can still correlate during severe market crises.

## No Universal Market Solution

Denley emphasizes that no single alternative investment functions effectively in every economic environment. In severe bear markets, almost all assets may decline, with cash and gold remaining rare exceptions. Investors must understand that alternatives are designed to support a core portfolio, not to replace the fundamental growth engine of equities.

## Strategic Portfolio Combination

The effectiveness of alternative investments lies in their combination rather than heavy allocation toward one specific asset. Gold addresses monetary stress, commodities mitigate inflation, and infrastructure provides real income. By selecting uncorrelated strategies, investors can build a more robust portfolio capable of weathering diverse risks that threaten traditional investment vehicles.

## Sources covering this story

- https://www.express.co.uk/finance/personalfinance/2257208/wealth-manager-explains-little-known-alternative-investments-rich-people-do — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._
