Optimize Your Portfolio
with Non-Traditional Solutions
MainStay Investments offers a number of funds that employ non-traditional strategies as part of their overall investment process, ranging from long/short equity strategies to hedge fund of funds. These funds are managed by MainStay’s diverse roster of boutique investment managers.
Key Benefits of Non-Traditional Investments
All mutual funds are subject to market risk and fluctuate in value. Alternative investments are speculative and entail substantial risk. If a security sold short increases in price, an investor may have to cover its short position at a higher price than the short sale price, resulting in a loss. Because the loss on a short sale arises from increases in the value of the security sold short, such loss is theoretically unlimited. When borrowing a security for delivery to a buyer, an investor also may be required to pay a premium and other transaction costs, which would increase the cost of the security sold short. Options and futures contracts have the risks of unlimited losses of the underlying holdings, due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates, and currency exchange rates. An investment in options is not suitable for all investors. Investments in absolute-return strategies are not intended to outperform stocks and bonds during strong market rallies. Investments in derivatives often involve leverage, which may increase the volatility of the investment and may result in a loss. High-yield securities (commonly referred to as “junk bonds”) are generally considered speculative because they present a greater risk of loss than higher-quality debt securities and may be subject to greater price volatility. Foreign securities may be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. These risks are likely to be greater for emerging markets than for developed markets. Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise.