As a principal investor in alternative asset classes, LGT Capital Partners’ investment philosophy centers around long-term planning, as Antonio highlighted. The main building blocks of the LGT Endowment are private equity, private credit, real assets, hedge funds, insurance-linked strategies, fixed income and equity. While each asset class has distinct value drivers and characteristics, a common trait of alternatives is that they are less exposed to traditional risks while, at the same time, earning significant premiums for assuming non-standard risks.

Speaking about the team’s key investment convictions, Antonio said that the secular upswing driven by capital expenditure and breakthrough innovations has led to a tilt towards future growth. He explained that unstable correlations and higher-for-longer interest rates require portfolio managers to look beyond traditional diversification, with elevated geopolitical risks and more frequent supply shocks serving as a reminder of the need to prepare for market distress.