Insights | January 10, 2025
Investing in Natural Capital Significantly Enhances “Sharpe Ratio”
Exploring natural capital as a low-correlation asset class that boosts portfolio diversification, hedges inflation risks, and enhances Sharpe Ratio.
The realm of alternative investments is vast, encompassing a wide array of real assets including private equity, real estate, and infrastructure. Recently, natural capital has emerged as a new arena within the global alternative investment landscape. The greatest advantage of investing in natural capital lies in the ability to enhance portfolio diversification thanks to its low correlation with other traditional alternative asset classes.