Investors concerned about the volatility that will accompany rising interest rates should consider a multi-strategy fund, says David Kupperman, portfolio manager for the Neuberger Berman Absolute Return Multi-Manager Fund. Kupperman says the most active strategy of late has been "event-driven" due to the surge in mergers and acquisitions. He says the spike in deals is a result of scarce top-line growth and a general inability to cut any additional costs. Kupperman says investors generally allocate between 10% and 30% of their assets in his multi-strategy fund, which is rebalanced quarterly.

More from Video

Immigration, Instagram and Oil - Here's What You Can't Miss Wednesday

Immigration, Instagram and Oil - Here's What You Can't Miss Wednesday

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

REPLAY: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

3 Ways to Fix Starbucks Biggest Challenges

3 Ways to Fix Starbucks Biggest Challenges

2 Things Fed Chairman Jerome Powell Just Said Upset Investors

2 Things Fed Chairman Jerome Powell Just Said Upset Investors

Jim Cramer: Oil Needs to Go Down to See Worldwide Growth Pick Up

Jim Cramer: Oil Needs to Go Down to See Worldwide Growth Pick Up