Call for 20% hedge allocation

Investors should consider allocating up to 20% of their portfolios to alternative investments, including hedge funds, according to David Darst, chief investment officer at Morgan Stanley Private Wealth Management. Speaking at the recent Banque Privée Edmond de Rothschild Europe's conference in Italy, Darst said the full 20% could be considered in a scenario of moderate growth and inflation with the oil price at about $26.23 per barrel. If oil falls to about $21.22, and there is some inflation and healthy growth, the allocation to alternatives could be reduced to 15%, with equities in...