I’m not saying that decoupling oneself from general market trends is a misguided strategy; only time will tell. But it is very dangerous to entrust a large portion of our capital to a management firm whose name encompasses any strategy, however erratic, controversial or incoherent it may be. Fashion and fear drag us into excesses that stray from a rigorous and dispassionate analysis of the right strategy for each individual, for each specific portfolio. Some managers and advisers dismiss any investment that is not alternative as obsolete and/or risky, and it seems that anything that is not alternative is unsustainable in this new world order, which still seems to us to be more chaos than order. But from our perspective, market decoupling cannot be a mass strategy of 
not a safe haven for our capital, but simply another option to be used as part of the diversification strategy tailored to each individual portfolio. This is particularly true given the lack of transparency and the wide variety of investments we expose ourselves to when we embrace alternative investment. It is just as dangerous to regard an equity investment as safe as it is to channel our assets into venture capital firms, for example. How can anyone regard such diverse alternative investments as a conservative strategy? In the current climate, not even top-tier non-sovereign fixed income offers an absolutely solid safe haven, as we have seen in this credit crisis. Therefore, we must not fall into the trap or delude ourselves into thinking that decoupling from the market allows us to safeguard our investments from danger. Not if we do so in exchange for the concept of «Alternative Investment», which is nothing more than a giant catch-all where our investments will be at the mercy of the free will of the managers who get their hands on our capital. Time will tell whether this strategy is sound or not, depending above all on what investments are made under this blanket alternative label. But under no circumstances can we regard it as the epitome of a conservative strategy, however much decoupling from the market we achieve. On paper, it would seem that staying on the sidelines of market trends reduces our risk, but in practice we will be allowing various fund managers, whom we will never get to know, to engage in risky practices with our capital. Furthermore, there is the more than likely increase in costs and fees, which are uncontrollable due to the very diversity of the investments.
As has been reported ad nauseam in various media, This is a widespread trend among high-net-worth individuals, but in our experience, it is very difficult to apply to the average, unsupported investor. What is a carefully executed strategy by family offices for large fortunes can turn into a veritable bloodbath for smaller fortunes, leaving them at the mercy of traditional private banking at best. Giving carte blanche for an average or small fortune to be invested
«alternatively» in a myriad of opaque strategies, with the well-intentioned aim of decoupling from the market, is more than reckless without rigorous monitoring of each of these investments. In many cases, it is like signing a blank cheque to invest in any kind of financial venture. Furthermore, most managers, let’s say «traditional«, are jumping on the bandwagon of hedge funds (yet another catch-all euphemism) whose workings they are completely unaware of. In fact, very few would pass the litmus test if we were to ask them to explain in detail the alternative investments into which they are channelling our money. But unfortunately, most of their clients will happily pay commission upon commission just to feel secure in the knowledge that they are uncorrelated with the market.
Once again, the protocols and investment strategies employed by high-net-worth individuals are not easily applicable to the average investor. Generally speaking, the service received by a portfolio without the support of a multi-family office tends to be far less competent, rigorous and independent. And in this case, market decoupling and alternative investment in general require close professional monitoring, which the average investor’s wealth does not usually have access to. That is why much of this capital jumps out of the frying pan only to land in the fire—albeit an alternative one. Meanwhile, other managers rub their hands together with glee.