Alternative Investments

Family Office
The Wealthspire Team
By The Wealthspire Team
January 3, 2022 · 2 min read

What Are Alternative Investments?

Alternative investments indicate assets that aren’t considered “conventional” investment types, like stocks, bonds, and cash. Alternative investments might include private equity, hedge funds, managed futures, real estate, commodities, and derivatives contracts.

What are the Types of Alternative Investments?

  • Private Equity investments are usually limited partnerships in which investors buy and restructure companies that are not publicly traded.
  • Hedge Funds are actively managed pools of investments that employ a wide range of investment strategies often including leveraged assets, with the goal of generating above average investment returns
  • Managed Futures are diversified portfolios of futures contracts actively managed by professionals, such as institutional investors and large funds
  • Real Estate investing includes owning properties to rent out for profit, “flipping” undervalued real estate by renovating and selling for a profit, and owning REITs (Real Estate Investment Trusts)
  • Commodities investing is the ownership of useful raw materials or physical goods that can be bought and sold for profit (i.e., precious metals, crude oil, agriculture).
  • Derivatives are financial contracts set between two or more parties that derive their value from an underlying asset, group of assets, or benchmark. Common types of derivatives include futures, forwards, options, and swaps.

For more information, here is a guide to alternative investments.

The Wealthspire Team
The Wealthspire Team

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