alternative investments

Alternative investments

Usually refers to investments in hedge funds. Many hedge funds pursue strategies that are uncommon relative to mutual funds. Examples of alternative investment strategies are: long--short equity, event driven, statistical arbitrage, fixed income arbitrage, convertible arbritage, short bias, global macro, and equity market neutral. May also refer to the high frequency style of commodity trading advisors who often employ technical and quantitative tools for intraday investments

Alternative Investment

Any investment other than a stock, bond, or cash. Prominent examples include derivatives, hedge funds, real estate, and commodities. Most of the time, institutional investors and high net-worth individuals are the main holders of alternative investments. This is because they are subject to fewer regulations and are consequently riskier than most other investments. Alternative investments are rarely required to publish independently verifiable financial information. They also have particularly high minimum investments, which discourage casual investors. Alternative investments are controversial in many quarters. Because of the comparative lack of regulation and disclosure, they are subject to scrutiny from politicians and economic analysts. However, they often have high (sometimes very high) returns.

alternative investments

See specialty investments.
References in periodicals archive ?
BANKING AND CREDIT NEWS-February 12, 2018-eFront Insight announces alternative investments changes
M2 EQUITYBITES-February 12, 2018-eFront Insight announces alternative investments changes
We've seen continued demand from advisors serving high-net-worth investors to access hedge funds, with hedge fund and fund of fund assets making up over a quarter of the alternative investment assets on Pershing's platform,' said Justin Fay, Pershing's director of Financial Solutions, Alternative Investments and ETFs.
However, FINRA found that from January 1, 2008, to July 1, 2012, LPL failed to adequately supervise the sales of alternative investments that violated these concentration limits.
While financial advisors are more likely to use mutual funds than exchange-traded funds to access alternative investments, ETFs are quickly gaining ground, a new report reveals.
Laeken International new alternative investment service program will consist of highly qualified and well-experienced members whose knowledge and understanding on alternative investments and commodity futures trading have already been proven and tested.
Due to the increased risk of misstatement inherent with these investments, an AICPA Alternative Investment Task Force prepared a Practice Aid, Alternative Investments--Audit Considerations, to assist in audits of alternative investments.
This translates to increasing Tractable-Homeless Capital looking for alternative investments.
The idea of profiting from real estate and other alternative investments is an exciting prospect.
Of the funds investing in alternative investments, the weight of alternative investments to total investment had reached 9.
The key to doing this is to look beyond stocks and diversify into alternative investments.

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