There are a number of ways to answer this question and the topic requires more than two minutes, so please look for follow-up and further information on the topic of alternative investments from TGIF 2 Minutes.
For starters, the key word in the question, “Does a portfolio need alternatives?” is need. And for reference, alternatives investments are often nicknamed “Alts” in conversations. Finally, “alternative investments” is a name mainly given by the financial services industry for:
- non-public investments
- private equity, private debt, and private real estate
- venture capital (VC)
- hedge funds
- and a whole host of other longer-term, less liquid and illiquid investments.
