Alternative Investments
What You Need to Know
Historically, alternative investments were generally available only to a limited number of investors, such as institutional investors, foundations and endowments.
Over the past several years, many progressive investment managers have fought to break down some of these barriers and make alternative investments accessible to retail investors. As a result, the alternative investment industry has experienced explosive growth.
The term “alternative investments” refers to a wide range of investments. They are usually not listed on any exchange.
Alternative investments should be part of an overall investment strategy for certain investors, based on their suitability profile
While everyone is unique, we have found that most clients have short-term or immediate needs (less than two years). They also have intermediate term goals that may be realized in five to seven years time. Also while having long-term wealth building goals, which alternative investments may help address.
features associated with ALTS:
- Historical outperformance over traditional investment products
- Low correlation with traditional investment markets
- Protection of wealth by smoothing market volatility
- Enhanced portfolio diversification
- Potential for higher returns over time
Drawbacks associated with ALTS
- Higher investment minimums
- Less liquidity than traditional investments
- Longer subscription purchase process
- Limited transparency
- Limited performance history
- Subject to less regulation than traditional investments
- Riskier than traditional investment strategies
At Cabot Lodge, we specialize in alternative investments, always striving to identify investments which can meet our clients’ needs and designed to achieve their goals.
Clients count on their Cabot Lodge Advisor to:
- Continually monitor progress towards goals
- Communicate and meet regularly to review portfolio performance
- Discuss current market conditions and their impact on your portfolio
- Make themselves available at any time to answer questions and address client concerns
Incorporating ALTS
Alternative investments should be part of an overall investment strategy for certain investors, based on their suitability profile. While everyone is unique, we have found that most clients have short-term or immediate needs (less than two years). They also have intermediate-term goals that may be realized in five to seven years’ time. Also while having long-term wealth-building goals, which alternative investments may help address.
Different investment products are best utilized for needs and goals with different time frames
- Short-term needs are generally addressed with liquid, stable investments such as CD’s, money market accounts, and short-term bonds.
- Intermediate needs can be met with traditional investments or instruments such as equities, fixed income (bonds), and mutual funds.
- Long term goals, which by definition have the longest time horizon, are generally attained with investments in growth oriented vehicles such as equities and alternative investments.
Stocks & Bonds
Stocks, or equities as they are also known, are a type of security that represents ownership in a corporation. Bonds are essentially loans made by investors to governments or corporations.
Mutual Funds
With more than 10,000 mutual funds available, and many working Americans investing in them through their employer-sponsored plans, mutual funds are the mainstay of many portfolios.
Alternative Investments
Alternative Investments, which have historically been available only to high net worth investors, are now available, when suitable, to most investors through Cabot Lodge Securities LLC.
Retirement Planning
Retirement is a major concern for most investors today. Cabot Lodge can help its clients plan for their retirement strategically.
Real Estate Investment Trusts (REITs)
Real Estate is an important component of a well diverisified portfolio. Cabot Lodge can help its clients identify profesionally managed REITs.
CL Wealth Management
CLWM is a registered investment advisor firm focused on crafting individual portfolios to meet the specific needs of each client.
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