|
Alternative Investments
|
"Many organizations are seeking higher returns and broad portfolio diversification and alternative investments are seen as the source..." |
|
| |
-
An investment in alternative investments requires that the investor meet certain suitability standards and as a result this type of investment may not be suitable to all investors. In order to pursue this type of investment with Jesup & Lamont, an investor must demonstrate that they meet all suitability standards, including that the investor has enough business experience that they can understand as well as evaluate the investment. Furthermore, the investor must be a resident in jurisdiction where the investment or offering of investment is made and would not be contrary to local laws and regulations.
-
Alternative Investments are speculative and involve a high degree of risk, may engage in leverage, short sales and derivatives. Derivatives can be illiquid and may disproportionately increase losses and may have a negative impact on portfolio performance. Leverage can increase volatility. This style of investment is designed for investors who accept and understand the risks and accept that they could lose all or a substanstial portion of their investment.
|
|
|
With that said...the landscape for Alternative Investments has evolved dramatically over the last decade experiencing unprecedented growth of assets under management. And it seems that traditional asset management companies can hardly retain top talent because investors are more willing to pay for superior performance.
The label 'alternative investments' is a somewhat general and vague investment class, especially to the institutional world which has well defined fiduciary obligations. Yet, family offices, endowments, pensions, and public funds are utilizing these asset classes to ensure asset allocation for their portfolios.
How many people have the time or opportunity to meet 10, 20, or 30 portfolio managers? Then once the search has identified prospective managers even fewer investors have the experience or know how to thoroughly interview the manager to confirm that he or she adheres to the stated investment style. Finally, once the investor has committed funds, it is difficult to keep track of the fund's investments or maintaining any certainty that the manager is not developing a style drift. This is where we help. Our alternative asset management group has met and worked closely with many of the leading portfolio managers, especially 'value' managers. We understand there is no single solution to meet the needs of everyone. We understand that most people would not seek such high returns if they were fully aware of the risk exposure needed to achieve those high returns. We understand after that tax returns are important to most investors. We are dedicated to finding the right mix of products and services |
|
|
|
|
|
|
