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| image source: moneycrashers.com |
Most investors are well-aware of traditional investment strategies. However, outside the sphere of conventional investment options, there exists a world of alternative investment strategies. Investors should be aware of these options because an alternative investment strategy can be helpful in some situations. Moreover, investors can benefit from alternative investments; despite offering lower risks, these strategies can provide greater returns.
Unraveling the options of alternative investment requires investors to consult a trusted and skilled financial advisor. For instance, investment strategist Charles F. Whitman founded Whitman Asset Management, a firm that provides its clients various alternative investment programs, including:
- Private equity- This comprises of investors that directly infuse capital in private companies and other assets. Capital from this kind of investment comes from pension funds and retail and institutional investors. After purchasing a business, a private equity investor seeks to make it more profitable. After which, the investor may sell the assets or have them on the stock market.
- Direct investment in startups- Also known as angel investing, this strategy is known to be a high risk and high return strategy for investors. Investors can easily invest in startups by providing the needed capital.
- Hedge funds- These consist of pooled funds that utilize various investment strategies such as equity long-short, distressed assets, and arbitrage. Compared to private equity, investors can acquire their money more frequently in hedge funds.
- Private placement debt- Investors provide finances to a company through private placements. Investors usually use promissory notes or mezzanine debt to provide them with a steady income.
Each of these alternatives possesses distinct technicalities and complexities that can be best understood by investors by consulting optimal investment strategists.
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| image source: gahanagriha.com |
As an investment strategist, Charles F. Whitman uses fundamental and technical data to analyze market environments and formulate trading ideas in a framework focused on risk management. He is also the founder of Whitman Asset Management, a Chicago-based firm that provides its clients with alternative investment programs that target exceptional risk-adjusted returns. For more information on Mr. Whitman and his professional career and accomplishments, visit this LinkedIn page.
