Market
Memos from Howard Marks: The Indispensability of Risk"Alternative investments" encompass a wide array of separate asset classes, strategies and vehicles, each with a role in an overall portfolio.
At The Alts Institute, we’ve curated the essential content to give you quick, to-the-point summaries of the concepts and terminology to understand the potential benefits of alts.
To invest in alternatives, foundational expertise is essential—but not sufficient. There is also a layer of applied knowledge and practical considerations to consider.
The Alts Institute provides insights into how to incorporate alts in an overall portfolio—from evaluating various investments and understanding potential outcomes to constructing a mix of alternatives to meet individual needs and goals.
We believe alternatives are at an inflection point where the benefits to investor portfolios and advisors’ business are abundant. Portfolio models are being tested, and new best practices are emerging.
In response, The Alts Institute commissions proprietary research about advisors, investors and practice management trends in this rapidly evolving space. Stay tuned for the results.
Explore the world of alternative investments confidently with our expert-curated online glossary for all your financial terminology needs.
View GlossaryThe percentage of a private fund’s investment profits that a General Partner (GP) receives as compensation. Also known as incentive fees or performance fees. Typically, a fund needs to, or must meet a specific return (also known as a hurdle rate).
Risks to consider: Investing in alternatives entails risk and may not be suitable for all investors. Alternative investments can be illiquid due to restrictions and the lack of a secondary trading market. Before investing in alternatives, investors should carefully consider their investment objectives, time horizon, tax sensitivity and risk appetite. There is no assurance that an alternative investment's objective will be achieved. Investors could lose all or a substantial amount of their investment. Investors and advisors should understand how each investment supports their overall goal and take a diversified approach when adding alternatives to a traditional portfolio.