Alternative Investment

“Alternative investments” is a label for a disparate group of investments that are distinguished from long-only, publicly traded investments in stocks, bonds, and cash(often referred to as traditional investments). The terms “traditional” and “alternative”should not imply that alternatives are necessarily uncommon or that they are relatively recent additions to the investment universe. Alternative investments include such assets as real estate and commodities, which are arguably two of the oldest types of investments.

One of the key features of alternative investments is that investing in them requires special skills and information. Investing in alternative assets can require handling illiquidity, transacting on private markets, operating sophisticated investment strategies, or risk–return profiles that are different from those of traditional long-only investments.