In a world of investments dominated by equities and bonds, the category of “alternatives” offers great allure to portfolio investors seeking attractive returns and potentially both diversification and downside protection. It is a catchall label to help investors quickly categorise the universe of opportunities. However, the term also purveys a sense of mystery, additional complexity and high fees. Such a broad label can leave many thinking too myopically about the opportunities available to them. Urging investors against considering an alternative to this catchall label, Pete Drewienkiewicz clarifies what exactly “alternatives” mean.
