Risk managed portfolios are achieved by allocating to dissimilar price movement asset classes which is a primary goal for prudent portfolio management. Because alternatives are not stocks or bonds, by definition, they have dissimilar price movement to stocks. To reduce the volatility of returns of an all stock portfolio, prudent portfolio managers look to use any good asset class that exhibits dissimilar price movement. The popular choice is bonds, which have become very difficult to justify in today’s environment. As a complement to bonds, or even a replacement for bonds, alternatives have many characteristics making them a superior choice.