Are you hearing more about alternative investments? Alternatives include assets like private equity, private credit, hedge funds, real estate, art and luxury goods. The global value of alternative assets under management (AUM) surged from $4.1 trillion in 20101 to an estimated $16.3 trillion2 by the end of 2023. The value is projected to reach a staggering $25.4 trillion within the next five years.3
High-net-worth (HNW) and ultra-high-net-worth (UHNW) people are driving the boom in alternatives. Market volatility has created incentive to diversify in challenging economic conditions.4 Investments to protect against inflation are in high demand. And strong annual returns in alternatives, which sometimes can exceed stock market returns, add to their attraction. Thanks to technology, investing in alternatives has become a more accessible option, giving you the opportunity to benefit from a broader array of investments than ever before.
| Investment Type | Average Annualized Returns (10-Year Period—Estimate) |
|---|---|
| S&P 500 | 12% |
| Private Equity | 14% |
| Private Credit | 8%–11% |
| Real Estate Investment Trusts | 8% |
| Hedge Funds | 5%–15% |
| Art / Luxury | 10%–15% |
Personal tax rates are probably going in one direction: Up.
Sources:
S&P 500, TradeThatSwing, Investopedia, J.P. Morgan, Nareit, AEI, RIA Intel, The Fine Art Group.
Sources:
1. S&P: Macrotrends. (n.d.). S&P 500 index – 90 year historical chart.
Mitchell, C. (2024, January 8). Historical average stock market returns for S&P 500 (5-year to 150-year averages). TradeThatSwing.
2. Private Equity: Jahn, M. (2022, July 10). How do returns on private equity compare to other investment returns? Investopedia.
3. Private Credit: Kennedy, T., Seter, C., Serpe, J., & Cascio, R. (2023, September 12). Can private credit continue to perform? J.P. Morgan.
4. Real Estate Investment Trusts: Nareit. (n.d.). Annual index values & returns.
5. Hedge Funds: Perry, M. J. (2021, January 7). The SP 500 index out-performed hedge funds over the last 10 years. And it wasn’t even close. AEI.
Uhlfelder, E. (2022, July 25). The most consistently profitable hedge funds continue to prove their edge. RIA Intel.
6. Art: Heriot, A. (2023, May 31). Is art a good investment? The Fine Art Group.
While there’s no universal strategy for investing, some investors are shifting away from a conventional portfolio of 60% allocated to stocks and 40% to bonds. Instead, they’re aiming for something like 50% stocks, 30% bonds and 20% alternatives. Reports suggest HNW investors today allocate as much as 25% of their portfolio to alternatives, and UHNW investors allocate as much as 50%.5
At RWA Wealth Partners, we can help you strike the right balance between investments to help you reach your goals. We can tailor our advisory services, platforms and solutions to your preferences and risk tolerance. While traditional assets still hold significant value as the core of your portfolio, we can also help you explore a wider, more diversified investment selection if you’re interested. Alternatives offer exciting prospects, though they require careful oversight. We can help you fully understand how they work and what the risks are.
Despite their rising popularity, alternatives can sometimes seem mysterious compared with traditional investments. In this article, we provide an in-depth review of the different alternative investments, along with their historical performance, potential downsides, and key considerations for incorporating them into your investment strategy.
History of alternatives
The roots of alternative investments6 trace back to the 1800s. It began with early private investments like funding the transcontinental railroad, and these set the stage for what we now call alternative assets. They were different investments outside the usual stocks and bonds and were often sought by affluent individuals and families.
After World War II, advances in technology and changes in regulations led to the rise of venture capital and private equity, as well as the inception of hedge funds. In 1949, Alfred Winslow Jones introduced innovative hedge fund strategies, catalyzing growth in this area. This prepared the way for a future where alternatives have grown to over $16 trillion in AUM.
Allure and rise of alternatives today: The ‘illiquidity premium’
Today, you’ll find that alternative investments are gaining popularity as a complement to traditional assets. Alternatives include investments like private equity, real estate and hedge funds, known for potentially higher returns and strong risk-adjusted performance. These types of investments also offer protection against inflation.
A key benefit to alternative investments is the “illiquidity premium.” Studies have shown that investors who take on the additional risk of illiquidity can expect an additional return, which can be around 3% over the risk-free rate.7
The illiquidity premium compensates you for the limitations associated with these assets, such as longer holding periods and the potential difficulty of selling them quickly.8 Highly liquid assets like major corporations’ stocks allow for rapid sales with minimal impact on price. This is because their broad market acceptance and standardization enable quick matching of buy and sell orders.
In contrast, assets that are less liquid are more challenging for you to convert into cash quickly without substantially reducing the price. These assets often have unique features or are part of specialized markets, so finding buyers requires more effort and time.
As you research alternative investments, you’ll come across many opportunities, which vary in terms of returns, risks and how they can balance your portfolio. Let’s look at some key categories.
Private equity: Investing in non-public companies offers the chance for significant returns. However, it also involves more risk and typically requires a longer commitment.
Private credit: This involves lending to private entities or investing in their debt. It can earn higher interest income compared with traditional bonds.
Real estate: This sector includes direct property investments and real estate investment trusts (REITs), offering rental income and potential appreciation.
Hedge funds: These funds require larger investments and use a broad range of strategies to earn returns in different market conditions, making them a high-risk, high-reward opportunity.
Passion assets (art, luxury goods and rare whiskey): Investing in collectibles like art and rare items can be a passion and a profit opportunity. Their value can increase substantially over time, but returns can be variable depending on the category.
Let’s inspect each of these alternative assets.
Private equity
With private equity, your investments directly influence and shape the growth of private companies. You typically take part in private equity through a fund that holds many investments in private companies.
Here are a few types of private equity that you can invest in.
- Venture capital (VC): This involves funding startups that show potential for high growth.
- Buyout or leveraged buyout (LBO): This strategy includes buying companies using a mix of debt and equity, with the goal of restructuring and then selling them for a profit.
- Growth capital: You provide capital to established companies to aid their growth or restructuring, without changing who controls the company.
- Real estate private equity: Investments in this category focus on property development, redevelopment or distressed acquisition.
Historical performance
Over a 20-year period ending in 2021, private equity investments earned an average annual return of 14.65%,9 as reported by Cambridge Associates’ U.S. Private Equity Index. In the same time frame, the Cambridge Associates U.S. Venture Capital Index showed that VC investments had a slightly lower average annual return of 11.53%. However, during the decade from 2010 to 2020, VC investments surpassed private equity, achieving an average annual return of 15.15%.
Looking at it another way, data from KKR shows that private equity consistently outperformed public equities by around 4.3%10 after fees on a net annualized basis over several decades. In times of high inflation, private equity often does better than public stocks, sometimes outperforming them by around 6%, according to KKR.11 Private equity set a record for deal volume in 2021, though a report from McKinsey shows volume fell 26% in 2022, to $2.4 trillion,12 in response to factors like the increasing cost of debt financing due to interest-rate hikes.
Historically, several factors underpin the ability of private equity to deliver returns. Private equity firms apply operational expertise to speed up growth in the companies they acquire. By addressing inefficiencies, investing in tech or equipment upgrades, or advising on expansion opportunities, private owners can improve a company’s competitiveness.
Private equity firms also frequently buy companies at discounted valuations13 compared with public markets. Paying lower purchase prices creates a value cushion at acquisition, priming the investment for substantial appreciation.
On top of that, by funding acquisitions with borrowed capital, private equity firms can improve returns without requiring an equivalent amount of equity. For instance, with LBOs, a private equity or specialist LBO firm will invest a smaller portion of equity and leverage debt at favorable rates based on the target company’s cash flow.
The goal may be to restructure the business by aggressively cutting costs, selling non-core assets or reviving growth to build value over several years. The improved business might eventually be sold or go public, generating returns for private equity investors that exceed the initial equity stake. Profits accrue from both operational improvements and the benefits of access to capital. However, debt also compounds losses if investments underperform.
Keys to success
Investing in private equity requires strategy, due diligence and patience. Here are three keys to success.
- Diversify: For example, consider investing in a mix of VC, growth equity, leveraged buyouts, distressed acquisitions, real estate, infrastructure and other niche strategies to insulate against weakness in any single area. You can also diversify across industry sectors and geographies.
- Do your homework: Look at the past performance of the investment, the skill of the people managing it and what’s happening in the surrounding market. Our team of advisors can help perform this type of research and analysis.
- Take a long-term mindset: This differs from trading stocks. Focus on value creation over years rather than quarters. You typically can’t sell private equity quickly, so you need to understand that your money is committed for many years. Some private equity funds may require you to invest for seven to 10 years.14 It’s wise to filter out short-term public market volatility and keep your focus on the long-term growth patterns for private companies building competitive advantages in growing markets.
Risk considerations
When you invest in private equity, some top risks include your money being locked up for a long time, difficulty in selling your investment quickly, less transparency about your investment’s performance compared with public stocks, and the possibility that the company doesn’t grow as expected.
Notable corporate bankruptcies in the private equity sector include the car rental company Hertz and the retailer Toys R Us.15 These failures often result from private equity firms placing excessive debt burdens on these companies, which can lead to unsustainable financial positions.
Private equity investments dropped from $1 trillion in 2021 to $654 billion in 2022, exits fell from $969 billion to $565 billion, and fundraising decreased from $413 billion to $347 billion.16 This decline was largely attributed to the Federal Reserve’s rate hikes, which ended the era of cheap debt in buyout markets and contributed to recession fears and a reduction in leveraged loans from banks. This was a departure from the past, where private equity benefited from lower financing costs and more lenient regulatory environments.17 The landscape changed in early 2024, however, as the Fed held steady on interest rates and expectations grew for rate cuts later in the year.
Private Credit
Private credit is a form of lending outside the traditional banking system, and it allows for more customized loan agreements. Since the Great Recession, banks have faced more regulatory scrutiny and capital restraints on risky lending. As a result, a gap emerged for non-bank capital providers to finance the middle market. Asset managers have filled this void, using credit expertise to underwrite and originate business loans while delivering higher earnings to investor portfolios.18
Private credit has grown significantly in recent years. From a market size of $875 billion in 2020, it expanded to around $1.4 trillion at the start of 2023, and it’s expected to reach $2.3 trillion by 2027, according to a report from Morgan Stanley.19 Unlike most bank loans, private credit often includes floating interest rates,20 providing a hedge against interest-rate fluctuations.
Here are some key types of private credit.
- Direct lending: Small and medium-sized enterprises receive these loans directly from non-bank entities. This allows for more flexible terms and quicker access to capital than traditional bank loans.
- Mezzanine debt: Companies actively involved in buying other businesses or merging with them often use mezzanine debt, a blend of debt and equity, to finance these transactions.
- Distressed debt: This involves buying the debt of financially troubled companies at a discounted price, aiming to profit from the company’s recovery or restructuring.
- Special situations: Lenders may provide loans to companies experiencing unique circumstances such as rapid growth or significant changes.
- Real estate private debt: This includes funding for development, acquisition and refinancing, and it serves as an alternative to traditional real estate financing methods.
- Venture debt: Venture debt lenders provide loans to startup companies that are not yet profitable but demonstrate potential for growth.
Historical performance
Private credit has significantly outperformed traditional fixed income in recent years. The Cliffwater Direct Lending Index: Senior-Only private credit tracker reported an average return of 7.8% over the last 10 years (through 2022), compared with 4.1% for the J.P. Morgan Leveraged Loan Index and 4.4% for high-yield bonds. As of Q1 2023, direct lending earnings averaged as high as 10.6%.21
This performance is notable in direct lending. According to J.P. Morgan Asset Management’s 2023 Long-Term Capital Market Assumptions report, direct lending is projected to offer forward-looking total returns of around 8% over a 10- to 15-year horizon.22
Keys to success
It’s important to use performance measures tailored to private credit to measure returns and assess credit risk. Net credit spread is one such measure. It refers to what you earn on a credit investment after accounting for expected losses, fees and costs. Since private debt isn’t frequently traded like stocks, you can use net credit spread to project your returns until maturity without factoring in changes in the asset’s valuation.
Stress loss is another measure. It captures the worst expected 12-month credit loss from defaults exceeding long-term averages (typically occurring during financial crises). With this information, you can better quantify the potential credit loss from borrower defaults.23
Private credit investing is not just about portfolio composition; it involves gaining access to specific funds and managing investments tactically to adapt to market changes.24 You should plan to diversify across various credit strategies and prioritize careful manager selection to improve your probability of strong returns.
Risk considerations
The primary concern is credit risk, especially in a slowing economy with rising interest rates, where the chance of defaulting increases.25 Another concern is liquidity, as these funds often have limited redemption periods and high minimums. Overcrowding in the private credit market could lead to lower credit standards. Also, these funds often lack the transparency of public markets, making it hard to assess their value.26 Conflicts of interest and less regulation in private credit can add to these concerns.
Social Security provides a continuous income stream in retirement, and the dependable monthly payments might help you cover certain routine expenses or health care premiums. However, your Social Security might represent just a fraction of your expected retirement income. Multiple income sources can push you into a higher tax bracket if not managed carefully, so it’s essential to claim your Social Security strategically to mitigate potential tax implications.
Real estate
Incorporating real estate into your portfolio can give you steady income and long-term capital appreciation. Real estate stands out because of its relatively low correlation with traditional market investments like stocks and bonds. It provides diversification that can stabilize your portfolio during market fluctuations. Besides the core categories of residential and commercial, you can also invest in industrial real estate, which has become increasingly important because of the growth of e-commerce.
REITs offer a way to invest in real estate without owning physical properties. They provide liquidity and regular income through dividends. You can also consider niche markets like health care facilities, data centers and student housing. These can diversify your investments, but they often require specialized management and industry knowledge.
Historical performance
Real estate, like every investment, may go through ups and downs—and location matters—but its steady appreciation has long been a cornerstone for building wealth.
For instance, the Nareit All Equity Index and the NCREIF Property Index have earned average annual returns of 11.58% and 9.03%, respectively, over a 45-year period.27 When it comes to individual properties people call home, residential real estate in the U.S. has earned average returns of 11.7% over 20 years.28 These gains are driven by factors like inflation, demand for housing and commercial spaces, and the finite nature of land. These elements collectively contribute to the long-term increase in property values.
Keys to success
When investing in real estate, you need to consider your personal preferences and how involved you want to be in property management.
Recent real estate investment preferences among HNWI have shifted toward direct investment in multi-tenant commercial and multifamily properties, as indicated by 48% of commercial real estate professionals and 39% of financial advisors in a recent survey.29
When you invest directly in commercial properties, you gain influence over key decisions such as tenant selection, lease terms, property management strategies, and even the timing of property sales or further investments.30 It also provides substantial tax benefits like deductions for mortgage interest and depreciation. Plus, direct investments allow for creative freedom in property development. However, these investments require significant upfront capital and ongoing management responsibilities, and you bear all associated costs. Liquidating directly managed properties can also be time-consuming.
Private real estate funds offer a more passive investment approach. They provide regular income through dividends. The initial investment can be considerably lower compared with buying physical properties. However, private real estate doesn’t offer the same tax benefits as direct property ownership and gives you no control or creative input on the property.
Risk considerations
Investing in real estate, while popular, isn’t risk-free. Market swings can be dramatic, with the famous example of 2008 still fresh in our memory. Even more recently, we saw a momentary COVID-19 residential housing scare in 2020, followed by a subsequent boom and frenzy through mid-2022. Then, interest-rate hikes brought activity to a screeching halt practically overnight. Not to mention how remote work has changed the appeal of large swaths of office space.
Real estate is also highly local. Location-specific issues can affect property values and rental income if you choose your investments poorly. On the property level, vacancy risks, problematic tenants, and negative cash flow from high expenses or low rental income can erode profits. Properties also require ongoing maintenance, creating the risk of unexpected repair costs.
Hedge funds
Investing in hedge funds lets you break free of the constraints of mutual funds with a variety of strategies to produce returns, earn income, hedge risks and achieve other goals. With hedge funds, a professional fund manager actively trades the fund’s investments with the goal of delivering positive returns. They generally have more flexibility in the assets and investment strategies they can use, like short selling, leverage and derivatives. This can increase risk but allows hedge funds to profit in different market conditions.
Historical performance
From 2011 to 2020, while the S&P 500 index offered an average annual return of 14.4%, the BarclayHedge reported the average hedge fund delivered a more modest 5.0% annually.31 In the five years leading up to 2021, annualized gains were stronger at 7.2%. However, the top 50 hedge funds performed better, with an average annualized net return of 15.5% over the same period.32
Keys to success
In hedge fund investing, you’ll encounter a variety of strategies,33 each tailored to different market conditions and investment goals.
- Equity long/short strategies: Here, the focus is on stock picking to create alpha and balancing long positions in undervalued stocks with short positions in overvalued ones.
- Event-driven strategies: These types of strategies capitalize on corporate events like mergers, acquisitions or bankruptcies, aiming to profit from the resulting price movements.
- Relative value strategies: Sometimes hedge funds can exploit pricing inefficiencies between related securities, while global macro strategies make bets based on macroeconomic trends and policy changes worldwide.
- Opportunistic strategies: When the time is right, hedge funds can capitalize on unique market opportunities, and multi-manager strategies diversify across various hedge funds to mitigate risk.
When investing in hedge funds, look closely at what the fund owns, how much you’ll pay in fees, the history of the fund manager and the rules for withdrawing your money. Hedge funds implement advanced tactics like short selling, using borrowed money for investing, and using complex financial instruments. It’s important to check if the fund manager can consistently generate positive returns in different market conditions while managing the risks involved. Always confirm that the manager’s approach to making profits aligns with your risk tolerance.
Risk considerations
Many hedge funds require high minimum investments. Accredited or qualified investors may need to contribute capital of $1 million or more.34 Hedge funds also charge much higher fees than regular mutual funds—often a 2% management fee and a 20% fee on the profits they generate.35
The wide range of hedge fund returns we highlighted above shows the importance of manager selection and the risk-reward trade-off inherent in the asset class. While the average hedge fund has underperformed broader equity markets over the past decade, the top echelon of managers has generated exceptionally strong returns. However, this outperformance comes with higher volatility and risks that merit thorough due diligence. The flexibility of hedge fund strategies allows skilled managers to generate alpha through short selling, leverage and derivatives, but this same flexibility can lead to significant losses if managers make incorrect bets or cannot control risk.
Passion assets
You might love Macallan’s rare single malt scotches, Patek Philippe’s coveted Grand Complications, sought-after prints by up-and-coming digital illustrators, or Hermès’ iconic Birkin bags. Luxury items and cultural relics have become an increasingly popular form of alternative investment. This category of investment can span art, whiskey, fine wine, classic cars and collectibles.
Historical performance
The performance of passion assets varies widely depending on not only the type of investment (art, non-art, luxury goods) but also the specific item itself. In general, smart selections in passion assets can generate healthy returns.
The Fine Art Group reports a 14% annual return rate on art assets, while the S&P 500 reports 11.88%. Artprice.com’s Artprice100 index indicated that fine art’s performance doubled that of Wall Street in 2023,36 and the Masterworks.io All Art Index has recorded an average annual appreciation of 9% since 1962.37
Whiskey has seen substantial appreciation, with a specific index tracking rare Scotch whiskies showing an increase of 373% over the past decade.38 This growth highlights the potential of niche markets in passion assets.
Both watches and handbags have maintained or increased their value because of brand prestige and limited production runs. Over the past 10 years through 2022, handbags have increased in value by 74%, while watches have soared by 147%, according to the Knight Frank Luxury Investment Index. Classic cars have appreciated by 185% in the same time frame.39
Keys to success
If you’re eyeing passion assets as an alluring alternative, it’s all about knowing your niche. For example, if you’re investing in whiskey, you should research the strict guidelines for what makes whiskey Scotch and pay attention to collectible editions and limited releases. Items with a well-documented history or those released in limited quantities typically accrue higher value. You can also focus on pieces from brands boasting reputations for enduring luxury quality, such as Hermès Birkin handbags or Rolex watches. These tend to weather shifts in consumer tastes. Keeping items in excellent, original condition is essential to preserving value, as wear and tear can decimate resale prices down the line.
Risk considerations
The value of luxury goods can correlate with economic conditions affecting consumer discretionary spending. Determining authenticity poses challenges, too, as top-tier luxury markets struggle with counterfeits flooding the space and clouding future valuations. Once you’re ready to sell, it can take time to find a buyer depending on the item category and whether it’s fallen out of demand. While the emotional thrill and potential high earnings of passion assets can be attractive, you need to research your category down to the individual whiskey case, wine label or handbag to avoid getting burned.
Passion assets should only account for a small proportion of your alternatives and total portfolio. These items come with substantial risks that most traditional investments do not carry. Authenticity issues can undermine their value, luxury goods follow unpredictable demand cycles, and selling niche collectibles takes specialized knowledge and marketing. While the potential returns can be enticing, passion assets lack transparency and liquidity compared with stocks and bonds. Be sure to limit their weight.
Alternatives can strengthen your portfolio, but only with the right guardrails
As alternative investments continue pushing into the mainstream, your opportunities to diversify your portfolio and potentially enhance your returns have never been greater. But at its core, a sound investment strategy needs the foundational mix of stocks, bonds and cash—with alternatives adding new growth potential, inflation protections and unique opportunities.
Alternatives come with some concerns to consider. For example, most alternative investments are less liquid than traditional investments like stocks or bonds. This means you will probably need to invest in alternatives for years before being able to access your money. Remember that some private equity funds require you to invest for 10 years before you’re able to sell. You also have reduced performance visibility with alternatives.
Fees are another important factor. The costs associated with private equity, debt, real estate and hedge funds are far higher than fees associated with stocks and bonds. You should carefully consider these high costs before making an investment in alternatives and understand how fees may erode performance.
If you’re an accredited investor considering investments, you need to put personalized advisory services at the top of your priority list. Call RWA Wealth Partners today to discuss whether alternatives have a place in your portfolio. Then we can get started together.
Think of the current estate tax breaks as a limited-time offer.
The current tax code has an expiration date, and the sunset is approaching faster than a filibuster in a contentious Senate debate.
Sources:
1Caporal, J. (2023, October 2). Alternative investments of the ultra-wealthy in 2023. The Motley Fool.
2Linna, L. (2023, January 11). Alternative investments industry “expected to show solid growth”: Preqin. Delano.
3Preqin. (n.d.). Future of alternatives 2028.
4Hall, K. (2023, February 16). The rise of alternative investments. Escalent.
5Spitz, J. (2023, May 9). How the wealthy invest: A shift to private equity and real estate. Origin Investments.
6Preqin. (n.d.). The past, present, and future of the industry.
7What is the illiquidity premium? (n.d.). The Economist.
8De Carvalho, R. L. (2023, April 8). The illiquidity premium in private asset markets. BNP Paribas Asset Management.
9Titan. (2022, September 12). How private equity returns stack up.
10McVey, H. H., Allouani, R., Zhao, Y., & Le, V. (2023, March). Regime change: The role of private equity in the ‘traditional’ portfolio. KKR.
11KKR. (2023, March 1). Optimizing returns across changing macroeconomic environments.
12McKinsey & Company. (2023, March 21). McKinsey global private markets review: Private markets turn down the volume.
13Faster Capital. (2023, December 22). Types of deals that private equity funds invest in.
14Clear Ridge. (n.d.). How long does a private equity group wait before selling your company again?
15Chancellor, E. (2023, May 12). Private equity is being squeezed from all sides. Reuters.
16MacArthur, H. (n.d.). Global private equity report 2023. Bain & Company.
17ICLG. (2023, September 21). Private equity laws and regulations USA 2023-2024.
18De Silva, H., Kraus, K., Steiner, J. R., & Gandhi, P. (2023, October 5). Specialty finance: The $20 trillion next frontier of private credit. Pimco.
19Morgan Stanley. (2023, September 15). Understanding private credit.
20Goldman Sachs. (2022, October 20). Understanding private credit.
21Kennedy, T., Seter, C., Serpe, J., & Cascio, R. (2023, September 12). Can private credit continue to perform? J.P. Morgan.
22Kennedy, T., Seter, C., Serpe, J., & Cascio, R. (2023, September 12). Can private credit continue to perform? J.P. Morgan.
23Stepstone and GIC. (2023, September). A systematic approach to private debt allocation in institutional portfolios.
24Murphy, D., & Hadas, J. (2023, October 31). Balancing act: Building private credit portfolios. Goldman Sachs.
25Basak, S. (2023, September 29). Private credit competition raises questions about risk. Bloomberg.
26Stone, A. (2023, November 3). Private credit funds are hot. Here are their strengths—and weaknesses. Barron’s.
27Linna, L. (2023, January 11). Alternative investments industry “expected to show solid growth”: Preqin. Delano.
28Davis, G. B. (2023, March 10). What 145 years of returns tells us about real estate vs. stocks. BiggerPockets.
29Mattson-Teig, B. (2023, May 30). HNWIs show a preference for direct investment in real estate. WealthManagement.
30Colestock, S. (2023, May 30). REIT vs. real estate: Which is better? SmartAsset.
31Perry, M. J. (2021, January 7). The SP 500 index out-performed hedge funds over the last 10 years. And it wasn’t even close. AEI.
32Uhlfelder, E. (2022, July 25). The most consistently profitable hedge funds continue to prove their edge. RIA Intel.
33CFA Institute. (n.d.). Hedge fund strategies.
34Achievable. (n.d.). 8.2 hedge funds.
35CFI Team. (n.d.). 2 and 20 (hedge fund fees). CFI.
36Pringle, E. (2023, October 21). Millennials are discovering this recession-resistant asset of the super-rich—and some indexes show it’s outperforming the S&P 500. Fortune.
37Gyorgy, S., Bickar, B., Kurtz, B., Petterson, A., Picarda, D., & Wieting, S. C. (2022, March). Global art market disruption. Citi GPS.
38Kinroy, L., & Marshall, P. (2023, March 15). The rise of whisky fraud. Lexology.
39Shirley, A., Haralambous, A., Everett-Allen, K., Gower, P., Wetters, R., & Matthews, W. (2023). The wealth report. Knight Frank.
Disclosures:
Diversification does not ensure a profit or protect against a loss.
Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed.
Companies mentioned in this article are not necessarily held in client portfolios and our reference to them should not be viewed as a recommendation to buy, sell or hold any of them.
