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Alternative Investments are any investments outside of the traditional categories or strategies of stocks, bonds, most mutual funds, and cash equivalents such as
certificates of deposit.
Alternatives can include hedge funds, private equity, venture capital, commodities, limited partnerships, exchange funds, managed futures, and direct real estate.
The key benefit of investing in alternatives is diversification. The patterns of returns in these investment categories typically have low correlation with stocks & bonds. Incorporating alternative investments into a portfolio may dampen volatility while at the same time potentially improve overall return.
Scott & Stringfellow offers the following alternative investments:
- Hedge fund-of-funds
- Managed futures funds
- Non-publicly-traded real estate investment trusts (REITS)
By their nature, alternative investments tend to be riskier than traditional investments or investment vehicles. Before investing in alternatives, you should understand the risks and investment terms to make sure they are appropriate for your situation.
To learn more about our Alternative Investments and how they may differ from your current investment strategies, please contact your local Scott & Stringfellow office today.
Although these and other similar alternative investments can provide benefits to many portfolios,they are not without their risks and challenges and are definitely not appropriate for all investors. Alternative investments are sold to qualified investors only by a Confidential Offering Memorandum or Prospectus. Alternative investments provide limited liquidity and include, among
other things, the risks inherent in investing in securities and derivatives, using leverage and engaging in short sales. An investment in an alternative investment fund is speculative, involves substantial risk, and should not constitute a complete investment program. An alternative investment fund may be highly leveraged. The volatility of the price of its interests may involve complex tax structures and there may be delays in distributing important tax information. These funds may not be subject to the same regulatory requirements as mutual funds, and their fees and
expenses may be high.
This summary is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy interests in any fund. There can be no assurances that any of these objectives will be met. Alternative investments are speculative. Investors could lose some or all of their investment.
Diversifying investments does not ensure against market loss.
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