Chasing the highest returns sounds appealing, until volatility wipes out years of progress. For investors nearing retirement, inheriting wealth, or managing a business sale, stability often matters more than big wins.
By investing in alternative strategies, you can lower portfolio volatility, providing the steady growth and peace of mind today’s investors need to secure tomorrow .
The danger of chasing high returns
Every market cycle brings its share of ‘next big things’, from tech booms (including AI) to property surges. The temptation to chase eye-catching gains is strong.
Risk is a two-edged sward. Market driven investments expose you to many risks and can lead to painful losses that undo decades of careful saving. Timing matters too: retiring during a market downturn or needing access to capital after a dip can permanently reduce your nest egg.
Protecting the wealth you’ve built is often more important than chasing outsized returns that could put it at risk.
Example: The chart below compares our clients’ average performance during major global equity declines (as measured by the MSCI World Index) over the past 20 years. The traditional 60/40 Balanced Index benchmark is provided for comparison.
Comparison of average performance during major global equity declines 
Why consistency beats volatility
“Slow and steady” isn’t just a saying, it’s a proven strategy for wealth protection. Steady, low-volatility growth offers:
- Predictability – fewer shocks and surprises, making long-term planning easier.
- Protection – avoiding large losses means you don’t waste years clawing your way back.
- Peace of mind – less stress and uncertainty, more confidence in your financial future.
Avoiding large losses is key to compounding wealth. A 25% loss followed by a 25% gain doesn’t get you back to where you started, it leaves you behind. Preserving capital through market downturns is key to compounding wealth consistently over time.
How alternatives deliver steadier growth
Traditional equity markets can be volatile, while bonds are unlikely to provide the income or downside protection they once did.
This is where alternatives step in, offering more consistent, lower-volatility outcomes by responding to different economic drivers and cycles than traditional investments. Key options include:
- Specialist strategies – skillful managers who focus on protecting capital while generating strong returns.
- Private markets, which include both credit and equity – these are generally relatively illiquid and require long-term commitments. The success of these strategies depends market conditions and the skill and experience of the underlying manager.
- Real assets – tangible investments such as property, infrastructure, and natural resources.
At Saxe Coburg, we focus on liquid alternative investments (specialist strategies) that give clients more flexibility and help protect capital in falling markets. These approaches draw on specialised skills across areas like M&A, macro trading and arbitrage strategies. We also select equity managers whose deep research, specialist knowledge and disciplined portfolio management achieve returns well in excess of the broader market.
Blending alternatives with traditional investments smooths out shocks and reduces severe downturns. While uncorrelated strategies may sometimes underperform in bull markets, their real value emerges during market stress, helping preserve capital over the long term.
Real Performance in Action
The chart below shows our clients’ asset-weighted returns since March 2014, benchmarked against relevant market indices. Portfolios are grouped into Balanced and Growth categories to provide meaningful comparisons.
As you can see, our portfolios have delivered similar returns to equity markets with significantly less risk.
Comparison of average performance March ‘14 – September ‘25
Portfolio construction, trade-offs and tailoring to you
At Saxe Coburg, building defensiveness and resilience into portfolios is a core principle. We carefully select specialist skilled managers, review strategies regularly, and blend alternative assets to align with each client’s goals.
Some clients prefer lower volatility and greater protection, while others balance a little more risk for growth potential. We’re transparent about trade-offs: lower-volatility options may not soar in bull markets, but they are designed to perform when conditions get tough. Even our growth strategies are designed to protect capital when markets are falling and demonstrate lower volatility than market benchmarks.
Investing with peace of mind
For next-gen investors, and for those approaching retirement, the real measure of success isn’t the highest possible return, it’s the most reliable one.
- Passing on wealth: Consistency protects your legacy.
- Retirement planning: Steady returns with lower volatility preserve your lifestyle.
- After selling a business: Stability ensures the wealth you’ve built continues to support your goals.
Alternatives play a key role in this. They balance portfolios, help smooth out shocks, and ensure your investments are focused on protecting and growing wealth with confidence.
What’s next?
Markets rise and fall, but is your portfolio built to weather the swings, or simply ride them out? At Saxe Coburg, we build portfolios that value resilience as much as returns. For over 30 years, we’ve helped clients grow and protect wealth through good times and bad, often delivering positive results even when markets falter. True wealth is measured not by chasing the biggest gains, but by securing the future you want, for yourself, and for the generations to come.
Discover how alternatives can safeguard your wealth. Get in touch today to explore a portfolio designed for steady growth and peace of mind.