top of page

Cash Is Back: An Active Investment Decision

Updated: Mar 18

Cash Is Back: An Active Investment Decision


Cash as an Active Investment Decision in your Portfolio


In today's economic climate, cash is regaining favor as a strategic investment choice, offering stability and liquidity amidst market uncertainties. With elevated equity valuations and a flat yield curve signaling late-stage economic conditions, investors are turning to cash to manage risks and seize potential opportunities. Recent Fed rate hikes have bolstered cash yields, making them more appealing for short-term security and reduced market volatility.


Crafting an effective cash allocation strategy involves identifying specific cash uses and selecting appropriate investment vehicles to meet defined objectives. Categorizing cash into segments such as "Day to Day" cash for immediate needs, "Operating Cash" for regular expenses, and "Core Cash" for intermediate needs allows investors to tailor their approach based on risk tolerance and liquidity requirements.


Actively managed separately managed accounts offer investors a tailored approach to cash management, providing customization and control over risk and return. This approach aligns with the practices of corporate treasury groups and institutional investors, ensuring flexibility and responsiveness to individual financial goals and market dynamics.


Access the full report to delve into the significance of cash as an active investment decision. Gain insights on why cash allocations make sense and how to optimize them for your portfolio.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • The Shift Towards Cash as an Asset Class

  • Benefits of Cash Management Allocation

  • Why Cash Now: Economic Trends

  • Cash Allocation Strategy

  • Vehicles of Cash

  • Personalized Cash Management Solution




Thanks to our Contributor


Piton Investment Management


Piton Investment Management provides clients with institutional quality, customized, conservative fixed income separately managed accounts. Piton leverages their extensive experience and market access for the benefit of their clients.

Access PrimeAlpha
Alternatives Education, Research, Database of Managers and Investors

​Important Disclaimers
This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

bottom of page