Alternative Assets & Hedge Funds
Some major alternative assets include hedge funds, private equity, venture capital, direct property/real estate, direct infrastructure, currency funds, commodities, art, antiquities and wine.
Some major alternative assets include hedge funds, private equity, venture capital, direct property/real estate, direct infrastructure, currency funds, commodities, art, antiquities and wine.
Characteristics of Alternative Assets
Characteristics of Alternative Assets
An alternative asset class is normally considered to be alternative if it has a couple of the following characteristics:
- Its investment performance has little if any correlation with other more traditional asset classes.
- The investment process may predominantly use derivatives to implement the strategies.
- The strategy objective may seek an absolute return rather than track or out-perform a particular index.
- The portfolio positions may be less transparent than those of traditional asset classes.
- The underlying investments may be less liquid (that is, lower ability to buy and sell the investments readily at a fair price).
- The fund manager may charge performance fees as an incentive to produce competitive performance.
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