Alternative Investments
Art, collectibles, farmland, litigation finance and other non-traditional assets.
Alternatives are held for diversification, but low reported correlation often reflects infrequent valuation rather than genuine stability.
Alternatives are held for diversification, but low reported correlation often reflects infrequent valuation rather than genuine stability.
Fee structures and exit mechanics deserve more scrutiny than headline returns.
Key concepts to master
- 01.Total cost of ownership, including fund fees and platform fees
- 02.Liquidity: when, and on what terms, you can get your money back
- 03.Tax treatment and which account type this belongs in
- 04.How this exposure overlaps with what you already own
Common mistakes
- ×Sizing a position based on recent performance rather than a written plan
- ×Confusing infrequent valuation with genuine stability
- ×Ignoring the tax drag of frequent trading in taxable accounts