Allocations to illiquid assets have become increasingly popular requiring asset managers to consider portfolio-wide liquidity characteristics. Although determining the price of illiquidity is a challenge for investors, the construction of a portfolio that includes liquidity constraints can be even more daunting. How do we optimize asset allocation with liquidity as a significant constraint on the portfolio?
Asset Allocation and Private Market (i.e. illiquid) Investing was originally published at Alpha Architect. Please read the Alpha Architect disclosures at your convenience.