Curious about alternative investments? You’re not alone. Long touted for their ability to increase diversification in investment portfolios, alternative investments are also known for helping to reduce risk amid volatile markets, supporting higher risk-adjusted return, and dampening portfolio volatility (something every investor appreciates in wild markets!) Of course, the downsides are fodder for discussion, too, including the potential for higher risk (always a partner to high return potential), as well as higher fees that can limit the actual cost/benefit. It’s a complex landscape, to be sure.
So, how can investors who want to know more about how their money is invested and why learn what they need to know about alternatives—without being overwhelmed by the complexities? Our own Patrick Maxwell has come to the rescue with a new, complimentary eBook, The LCM Guide to Alternative Investments: What they are, how we use them, and how they can add value to your portfolio. The book is now available to download on our website in both eBook and PDF formats.
If you’ve ever had the opportunity to chat with Patrick about alternatives, you know well that he is passionate about the subject. As our Senior Investment Officer, Patrick has been managing our alternatives portfolios for nearly a decade. In 2015, he continued to build on his knowledge, earning the Chartered Alternative Investment Analyst (CAIA) designation. As you can imagine, adding those impressive initials after his name was no easy task. The coursework required in-depth study on tough topics like qualitative analysis and trading theories of alternative investments, portfolio construction and benchmarking, and much more.
His goal was to do much more than simply learn for learning’s sake. “For years, I had seen too many firms add alternatives to their portfolios without knowing even the basics,” he says. “I’m sure their intentions were good, but I saw advisors making decisions based on limited knowledge, even less process, and little or no research.” To avoid making the same mistakes, Patrick set out to learn everything he could about this famously complex asset class. “I wanted to be sure I had the knowledge and insight to make smart, confident decisions about why, when, and how we should be investing in alternatives. And I wanted to be sure every decision we made was aimed directly at serving the needs of our high-net-worth clients.” This meant many things, including selecting alternatives that are:
With the completion of the new eBook, Patrick feels he is taking his mission one step further by adding an important service to our clients, many of whom are highly inquisitive about how their money is invested, as well as the thinking that leads to each investment decision.
In his introduction to the book, Patrick shares that alternative investments present one of the most predictable methods available for improving risk-adjusted return in a diversified portfolio. And yet, despite their success rate at achieving this goal, it has been challenging for investors (including many experienced advisors) to get beyond the basic definition of alternatives. This, he says, is largely because the world of alternative investments is rarely explained well—if at all. “My goal is to move the needle in that regard, starting by opening a window into the world of alternative investments for our clients here at Leisure Capital,” he says.
The LCM Guide to Alternative Investments was written to make alternative investments accessible, understandable, and even a little fun. If you are ready to expand your knowledge of investing by diving deeper into the unique world of alternative investments, this book is for you. We hope you enjoy it!
