Alternative Financial

The Alternative Financial Strategies investment category includes:

  • Private Equity and Debt Investments
    • Equity Funds – Invest in the equity of private companies.
    • Debt Funds – Invest in the debt of private companies.


  • Hedge Funds
    • Absolute Return Strategies – Seeks positive returns over time in both rising and falling markets.
    • Long/Short – Maintain both short and long positions in equity and debt investments.
    • Global Macro – Invest by going long or short debt and equity instruments based on fundamental analysis of global markets and economies.
    • Event Driven – Focus on investing in specific events, such as corporate restructuring, bankruptcy, or acquisition.


  • Managed Futures Investments
    • Systematic Trend Followers – Invest using quantitative models that seek to systematically identify and profit from positive and negative trends in markets.
    • Discretionary Macro – Invest in futures contracts using fundamental analysis of markets and economies globally.


We classify alternative financial strategies as alternative investments because there is a history of low or no correlation to traditional stock and bond investments.

When added to a traditional investment portfolio, alternative financial strategy investments offer the potential for more effective diversification, lower correlation to traditional investments, and reduced portfolio volatility.

Investors should note that diversification does not assure against market loss and there is no guarantee that a diversified portfolio will outperform a nondiversified portfolio.

Investing in alternative financial strategy investments may not be suitable for all investors and involves special risks such as risk associated with leveraging the investment, potential adverse market forces, regulatory changes, and potential illiquidity. Investors must meet specific suitability standards and understand these investments are for a long-term investment horizon.