From time to time our clients have asked us to help source Art, Classic Cars, Yachts and other investments of passion, and we can assist with the acquisition of such.
In general, alternatives are investments in assets other than stocks, bonds and cash, or investments using strategies that go beyond traditional methods, such as long/short or arbitrage strategies.
Since alternatives tend to behave differently than typical stock and bond investments, adding them to a portfolio may provide broader diversification, reduce risk and enhance returns.
Alternative investments are often met with misunderstanding. Some investors still think of alternatives as high-risk, exotic funds reserved for ultra-high-net-worth individuals and institutions. The reality is that alternative investments can be an integral part of nearly every investor’s portfolio.
Investors should choose alternatives that align with their distinctive goals, which may include: mitigating stock market volatility, lowering correlation to traditional markets, investing capital for a longer time frame in exchange for higher return potential, and hedging a portfolio against inflation or rising interest rates.