Alternative investment: Difference between revisions
Added a link about gemstones as these are becoming an increasingly popular form of alternative investment |
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An '''alternative investment''' is regarded as an investment product other than traditional investments such as [[stock]]s, [[Bond (finance)|bonds]], [[money market]]s, [[gemstones]] and/or [[cash]]. |
An '''alternative investment''' is regarded as an investment product other than traditional investments such as [[stock]]s, [[Bond (finance)|bonds]], [[money market]]s, [[gemstones such as Tanzanite]] and/or [[cash]]. |
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As the definition of ''Institutional Investor'' magazine's ''Alternative Investment Newsletter'' indicates, alternative investments include [[commodities]], [[financial derivatives]], [[hedge (barrier)|hedge]] strategies (or [[absolute return]] strategies), [[real estate]], and [[private equity]], as well as [[venture capital]]. They are supposed to have very low correlation with traditional investment products. However, this definition may not be suitable due to a fast-changing investment environment and should be reconsidered over time. |
As the definition of ''Institutional Investor'' magazine's ''Alternative Investment Newsletter'' indicates, alternative investments include [[commodities]], [[financial derivatives]], [[hedge (barrier)|hedge]] strategies (or [[absolute return]] strategies), [[real estate]], and [[private equity]], as well as [[venture capital]]. They are supposed to have very low correlation with traditional investment products. However, this definition may not be suitable due to a fast-changing investment environment and should be reconsidered over time. |
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Revision as of 23:14, 3 November 2008
An alternative investment is regarded as an investment product other than traditional investments such as stocks, bonds, money markets, gemstones such as Tanzanite and/or cash.
As the definition of Institutional Investor magazine's Alternative Investment Newsletter indicates, alternative investments include commodities, financial derivatives, hedge strategies (or absolute return strategies), real estate, and private equity, as well as venture capital. They are supposed to have very low correlation with traditional investment products. However, this definition may not be suitable due to a fast-changing investment environment and should be reconsidered over time.
Some alternative investment managers, such as hedge funds, cannot advertise or announce their performance under U.S. and European law. Most hedge funds or private-equity groups accept investments from only high-net-worth individuals or institutions.
Although many hedge funds cannot advertise, accredited investors, in accordance with Rule 501a of Regulation D of the U.S. Securities Act of 1933, can access the BarclayHedge databases of 6,400 hedge funds and download fund information, including AUM, contact information, and full performance data since inception.
Alternative investment management companies
Alternative investment management companies are the structural (i.e., legal, corporate) entities that manage alternative investment funds including hedge funds and private equity funds.
A single AIMC may operate several investment funds over the course of its existence and, because a many AIMCs are involved in a wide array of investment activities, the term has come to be used to distinguish the financial instruments such as hedge funds from the legal entities that run them.
