Risk Measurement Using VaR in Portfolio Management

As a portfolio manager for a high-net-worth individual, you are tasked with developing an investment strategy that respects the client's risk tolerance while achieving optimal returns. The client has a well-diversified portfolio comprising equities, fixed-income securities, and alternative investments but expresses concern over potential volatility in the portfolio’s value amidst changing market conditions.

Using a 95% confidence interval, assess the risk of the portfolio using Value at Risk (VaR) and explain the implications of this measure. Additionally, elaborate on the limitations of VaR as a risk measurement tool and suggest alternative methods for measuring risk that could serve as a complement to VaR in the context of this client's investment strategy. Provide a thorough analysis of the potential actions you would recommend to the client based on your findings.