Northside CIO Jim DeWolfe says investors are turning to alternatives as 60/40 portfolio falls short

The traditional 60/40 portfolio of stocks and bonds no longer delivers the returns investors need, pushing more money into alternatives such as hedge funds and private credit, according to Jim DeWolfe, co-founder and chief investment officer at Northside Capital. Over the past 35 years, the classic 60/40 mix of global stocks and bonds has generated an annualized return of about 6.6%, and that's before accounting for any fees, DeWolfe noted. In his view, that level of performance isn't enough to meet the long-term return targets of most investors today, which is why so many are rethinking traditional portfolio construction. He said this return shortfall has led many allocators to expand into alternative asset classes. "With yields and valuations both stretched, investors are increasingly em