Alternative Investments

Alternative investments, such as private equity, real estate, and hedge funds, have long been favoured by institutions and high-net-worth individuals seeking to strike a balance between diversification and return.

A drastic change in investment priorities has generated a market for alternative investment options, making the alternative investment environment more available to the private investor in recent years.

Alternative investments, which have traditionally traded in grey markets, have undergone their own transformation to capitalize on the rapidly growing private investor segment in order to satisfy this demand.

Investor interest in the alternative marketplace has grown because of changes to the way alternative funds are governed and enhanced levels of vehicle transparency, making it an appealing asset class for investors seeking returns that are not correlated to conventional investment classes.

Alternative investments have the ability to outperform traditional investments in almost every business setting. Alternative investments, when combined with conventional assets as part of a diversified portfolio, increase overall balance and both the short and long-term return profiles.

• Low correlation - As the market becomes more volatile, investors are pressured to take on more equity risk than they are comfortable with. Alternative investments are more balanced because they have a low degree of correlation with conventional assets.
• Portfolio diversification - Diversification of a portfolio and the asset allocation ratio have become more complicated. Investors were able to survive major losses during the 2000 Tech Crash and the 2008 Credit Crisis by simply adding real estate and commodity diversifiers to their portfolios.
• Mitigating risk - Over the course of many market cycles, an alternative approach to risk adjustment for a reasonable level of investor return has historically outperformed a more conventional strategy.