The Essential Nature of Alternatives
At James Alpha Advisors, we see the world differently. We believe alternative investments should be an essential part of every investor's portfolio. Our views are informed by our extensive experience in identifying, seeding and growing alternative investments with many of the brightest managers in this business.
We're not alone in our thinking. Just look to the institutions that have the size, resources and talent to assess and place investments wherever they believe the best opportunities reside, such as private college and university endowments. How do they view the importance of alternatives? We'll let the numbers answer that question.
Source: Nacubo. Fiscal year 2018. Past performance is not indicative of future returns. Allocations should not be considered investment advice and are not meant to represent a fund.
Universities and Endowments have access to superior financial resources and have unique investment objectives and allocations unlike the individual investor.
There is no guarantee that this investment strategy will achieve its objectives, goals, generate positive returns, or avoid losses. Liquidity and/or diversification does not ensure profit or protect against loss.
Incorporating alternative investments into a portfolio presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. Also, some alternative investments have experienced periods of extreme volatility and in general, are not suitable for all investors. Asset allocation and diversification strategies do not ensure profit or protect against loss in declining markets.
Alternative investments as a broad asset class are widely recognized for their ability to provide greater portfolio diversification and superior risk-adjusted returns; in many cases, equity-like returns with half the risk. Hedge funds invest in virtually any and all assets and structures on a global basis and are a strong proxy for the alternative sector.
Risk-Adjusted Returns of Hedge Fund Research Institute Indices Over 28 Years
January 1990 - December 2018
Source: HFR, James Alpha Advisors, Bloomberg. Past performance is not indicative of future returns. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
As an advisor, you recognize the importance of constructing client portfolios with traditional and alternative assets, but you also recognize that to properly research, identify, evaluate, monitor and select the appropriate alternatives for each individual client's needs requires a tremendous amount of specific expertise, time and resources.
At James Alpha Advisors, we do that heavy lifting for you so that you can focus on what matters most - taking care of your clients. Alternatives are our expertise. Let us show you what we can do for you.