Broker Check

Alternative Investments

Investing In Private Businesses.

When you invest in private businesses, their values do not generally change day to day like investments in the stock market.

Alternative investments provide qualified investors with exposure to markets and investment strategies that cannot be accessed through traditional fixed income and equity markets. In addition to attractive risk-adjusted return potential, alternatives allow clients to diversify their portfolios by investment strategy, portfolio manager, industry sector, geography and liquidity needs. These alternatives have the potential to balance a traditional or conventional portfolio of equities because many are not linked to the stock market directly.

When you invest in this capacity, an investor becomes a part owner of the hard assets associated with the investment. Direct investments allow for an investor to invest directly into a specific business.

The vast majority of alternative investments are intended to provide distributions for income. The majority of alternative investments that target income may do so on a monthly, or in some cases quarterly basis. Alternative Investments have provided dividends, however, these dividends are never guaranteed and will vary.

Hard Assets

  • Real Estate
  • Equipment Leasing
  • Mineral Rights
  • Oil & Gas Investments

Other Alternative Investments

  • Business Development Companies
  • Real Estate Development Funds
  • Land Banking Investments
  • Non-Publicly Traded Real Estate Investment Trusts
  • Note Programs
  • Private Placements
  • Royalty Interests
  • Tax Credit Programs

Investing in alternative investments is speculative, not suitable for all clients and intended for experienced and sophisticated investors who are willing to bear the high economic risks of the investment, which can include:

  • Lack of liquidity in that there may be no secondary market for the fund and none expected to develop
  • Volatility of returns
  • Restrictions on transferring interests in a fund
  • Potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized
  • Absence of information regarding valuation and pricing
  • Delays in tax reporting
  • Less regulation and higher fees than mutual funds
  • Loss of all or a substantial portion of the investment due to leveraging, short-selling or other speculative investment practices