What are Alternative Investments?
Numerous companies are positioning their investment style and funds into the alternative space. Referring to a fund as "alternative" or "non-traditional" is popular now because investors are looking for an alternative to volatility and they aren't finding it in traditional markets. Let's face it, institutional investment companies and ETF providers know that these alternatives are popular right now, and most products out there are labeled alternative for marketing and sales purposes.
But true non-traditional alternative investments are distinguished by the fact that they are private investments, as opposed to being public or "traditional" investments like exchange traded funds or mutual funds. Unlike traditional investments, private funds - like those offered by ASI Capital - are not traded on exchanges, nor are they perpetually open to new investment. Our funds are only open for investment for a limited amount of time, and are only available to Accredited Investors* through select financial advisors or directly by the issuers.
It is not just how private funds are sold that makes non-traditional alternative funds unique. Alternative funds offer portfolio diversification by being non-correlated with traditional publicly traded investments. At ASI Capital, our funds are designed to be non-correlated with traditional stock and bond investments like ETF's, mutual funds, and equity stocks.
True non-correlated diversification is impossible to get in the public exchanges because they follow the emotional cycles of investors and the news of the day.
We focus on making tangible, real investments in what we like to call the "real economy," where there is little emotional volatility. There is no daily emotional volatility in the economics of an apartment complex, for example.
At ASI Capital, calling our private funds alternative or non-traditional is not just for marketing. Our funds are alternative because of how they have the capacity to add value and diversification for qualified investors.
*As defined in Rule 501(a) of Regulation D of the Securities Act of 1933, as amended.