Why Consider Alternative Investments?
In today's complex marketplace, it is increasingly difficult for traditional long-only investment managers to realize the equity risk premiums seen in the 1980s and 1990s, where investors were handsomely rewarded for assuming the added risk of investing in stocks; the recent trends in equity market returns illustrate the point. Consequently, Jura Investments™ uses alternative investments to expand the opportunity set beyond traditional stocks and bonds, potentially enhancing returns and reducing risk through added diversification.
Alternative investment strategies are a by-product of traditional long-only active managers, who are constrained, as a matter of policy, from deviating from a given style or benchmark. As a result, long-only investment managers typically perform at or below the benchmark, which is an expensive way to gain market exposure.
Alternative investment managers are not style or benchmark driven. Instead, these managers focus on generating above-average returns through active-long and short bets regardless of market direction. Alternative investments are broadly classified as:
- Private Equity
- Hedge Funds
- Commodities and Managed Futures
- Real Estate
Please contact Jura Investments™ to learn if alternative investments are appropriate for your portfolio.