Since 2009 the Alternative Investments vehicles are being used by investors more than they have ever been. Strategies that coincide with the alternative investment come in the form of Hedgefunds. As earnings have been going up and as credit remains low the defensive mechanism of investment is widely popular.
The role of capital is now being displayed in different markets due to many event driven scenarios. Over the last two to five years the markets have seen a shift in credit vs. equity types of executions, this is noticed more often than in derivative interest rate based markets. Investors are leaning toward companies that manage and have formulas for understanding risks and concepts associated with risks.
The markets in general have experienced a form of deleveraging that has caused a rise in equities as interest on financing is rather low in finance driven sectors. Investors see these opportunities and use the alternative investment vehicles to take advantage of markets in an economies driven by parity to yield profits. This scenario has given many companies a "walk in the park" if you will with easing in many emerging markets and the rise of the cost of goods. Tempting as it may seem, their is comfortably in hedging. The times of the secular bull market in the United States economy is in fact event driven. The acts of Federal Stimulus has caused investors to disregard many of the negativity that once surrounded the hedge fund markets. Investors now began to understand that liquidity is an asset that defends their portfolio by helping guide and navigate them creating the positive yield that sustains growth and manages risk in the time of the low interest rate bond market.
Disclosure: I am long WAG.