Omnigence Asset Management Research Challenges Herding in Alternatives, Calls for a Return to Fundamentals

CALGARY, ALBERTA, CANADA, July 2, 2025 /EINPresswire.com/ -- Omnigence Asset Management, a Canadian-based alternative investment platform, is challenging what it describes as the “illusion of alternatives” in today’s investment landscape. In a recently released research commentary “High-Cost Beta Masquerading as Alpha: The Institutional Illusion of Alternative Investing and the Need to Return to Basics” the firm warns that overexposure to consensus strategies, financial engineering, and over-financialized segments is eroding the pursuit of true alpha—leaving many so-called alternative portfolios as high-cost beta in disguise.

“Alternative portfolios today are suffering from sameness and excess scale.” said Stephen Johnston, Managing Director at Omnigence. “Across infrastructure, private equity, and private credit, we see massive pools of capital crowding into identical trades at inflated valuations—with little regard for durability, downside protection, or investor alignment.”

Omnigence research aligns with the conclusions of numerous studies showing that the for many strategies the majority of “excess” return is attributable to systematic risk premia rather than skill. In fact, in private equity, most outperformance relative to public markets disappears after accounting for leverage, size, and illiquidity and that net-of-fee private equity returns often underperform a leveraged small-cap public benchmark. Hedge fund returns, once hailed as uncorrelated alpha sources, now track closely with equity beta, credit spreads, and momentum factors.

The implication is sobering: most alternative returns are just expensive beta—amplified by leverage, hidden by opacity, and marketed as alpha. In response, Omnigence advocates a return to first-principles investing—focusing on strategies with real-world value creation, structural inefficiencies, and long-term resilience.

About Omnigence: Omnigence Asset Management is an independent alternative investment platform delivering high-conviction strategies across farmland, private equity, secondaries, and healthcare. With offices in Toronto and Calgary, Omnigence is committed to long-term capital preservation, income generation, and true diversification in a world of crowded capital. Omnigence has grown to over CA$1 billion in platform assets by focusing on what it describes as the neglected middle —investment opportunities that are too small or too operationally complex for large institutions and mainstream alternative managers under pressure to deploy billions in capital.

DISCLAIMER: Our reports, including this paper, express our opinions which have been based, in part, upon generally available public information and research as well as upon inferences and deductions made through our due diligence, research and analytical process. The information contained in this paper includes information from, or data derived from, public third party sources including industry publications, reports and research papers. Although this third-party information and data is believed to be reliable, neither Omnigence Asset Management nor its agents (collectively “Omnigence”) have independently verified the accuracy, currency or completeness of any of the information and data contained in this paper which is derived from such third party sources and, therefore, there is no assurance or guarantee as to the accuracy or completeness of such included information and data. Omnigence and its agents hereby disclaim any liability whatsoever in respect of any third-party information or data, and the results derived from our utilization of that data in our analysis. While we have a good-faith belief in the accuracy of what we write, all such information is presented “as is,” without warranty of any kind, whether express or implied. The use made of the information and conclusions set forth in this paper is solely at the risk of the user of this information. This paper is intended only as general information presented for the convenience of the reader and should not in any way be construed as investment or other advice whatsoever. Omnigence is not registered as an investment dealer or advisor in any jurisdiction and this report does not represent investment advice of any kind. The reader should seek the advice of relevant professionals (including a registered investment professional) before making any investment decisions. The opinions and views expressed in this paper are subject to change or modification without notice, and Omnigence does not undertake to update or supplement this or any other of its reports or papers as a result of a change in opinion stated herein or otherwise.

Matt Barr
Omnigence Asset Management
+1 587-393-0893
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