Business
Welcome to the Making Margin podcast! Greenway’s team is here to discuss common financial mistakes and to help you navigate them. Meet the voices behind this episode of Making Margin:NickAllieJeffToday’s topic is all about alternative investments.For some time now, university endowments have included alternative investments in their portfolios attempting to both diversify their risk, and increase their return on investment.Most have been unsuccessful in actually increasing their returns, and according to a recent report, that lack of success is in direct proportion to the percentage of alternative investments in the portfolioShould individual investors hold alternative assets, or are plain vanilla portfolios just fine?Discussion Topics:Traditional asset classesStocks, Bonds, & cashAlternative assetsCommoditiesReal estateMaster limited partnerships (mostly in the energy industry)Private equityHedge fundsIn theory, who might be a good fit for alternative asset classes? What’s the potential benefit?Wealthy investorsLarge endowments/non-profitsIn reality, what have the drawbacks been?Lower return, Higher cost, & Dependence on manager selectionDo we hold any ‘alternative’ assets in our client portfolios?closest we get is REITsDo people need the additional diversification benefit that alternatives bring?Mostly noTake Away: A plain vanilla portfolio may be just what you're looking for.References: https://bit.ly/3evtgL1 https://bit.ly/3mZFm1M