What are Alternative Investments?
New to Alts? Start here.
A look at the most prominent strategies that make up the Alternative Investments space and what differentiates them from publicly traded investments like stocks and U.S. Treasurys.
NO LONGER LIMITED to institutional and high-net-worth investors, the world of Alternative Investments has drawn the attention of many qualified individual investors lately. Why? This broad category includes asset classes that tend to provide portfolio diversification, low correlation to public-market fluctuations, and returns with a history of exceeding those available through public markets.
This episode of Let’s Talk Alts features host Brian Partridge, head of Investment Solutions Group Specialists for Merrill and Bank of America Private Bank, in conversation with Nancy Fahmy, head of the Investment Solutions Group for Merrill and Bank of America Private Bank of America. For those who are newer to Alternative Investments or looking for a refresher on the basics, Fahmy answers key questions, including what types of investments belong to the broad category of “Alts,” what the potential benefits and risks are, and what investors can do to get started.
Important Disclosures:
Opinions are as of the date of the video and are subject to change.
Each video contains its own additional important information and relative risk disclosures that should be reviewed carefully.
Alternative Investments are speculative and involve a high degree of risk.
Alternative investments are intended for qualified investors only. Alternative Investments such as derivatives, hedge funds, private market offerings, and funds of funds can result in higher return potential but also higher loss potential. Changes in economic conditions or other circumstances may adversely affect your investments. Before you invest in alternative investments, you should consider your overall financial situation, how much money you have to invest, your need for liquidity, and your tolerance for risk.
When considering the appropriateness of mutual funds or Alternative Investments, please be aware that there are significant differences between these investments which will cause their investment portfolios, performance, tax treatment and other factors to differ. These differences include the types, availability and diversity of securities that can be purchased, economies of scale, regulations and other factors applicable to their management.
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