ALTERNATIVE INVESTMENT THEORY
Schwarz Gehard's extensive global network of affiliates provides direct access to proprietary investment deal flows. Our global network and deal sourcing capabilities enables us to identify investment opportunities that are not typically available through traditional channels. The advantages gained through our strategic network provides our investment committee with access to range of deals for deeper consideration.
A select few of these exclusive investment opportunities are co-invested through collaboration between our partners and our long-term clients. The remainder is further re-accessed, with a focus on medium-term gains containing negligible exposure to risk. Usually no more than 10% of these deals qualify, the ones that do make it are offered to our clients on an individual arrangement or packaged as an alternative fund.
WHY ALTERNATIVE INVESTMENTS?
The overriding benefit of alternative investment solutions is contained in their ability to perform under the stress of volatile economic conditions. Alternative investments with low or negative correlation to more traditional aspects of the investment landscape provide a perfect hedge against the volatility and frequency of market conditions. When incorporated as part of a diversified portfolio alternative investments have three main affects: improving long-term performance, reducing volatility and mitigating exposure to risk.
The consensus shared between our financial specialists approves the inclusion of alternative investments as part of a diversified portfolio. Dependent on client objectives and attitude towards risk, we typically suggest that a portfolio weighted with 10% - 20% of alternative assets provides an optimal mix of highest return at lowest risk.
Pre-market and off-market alternative investments provide those with a specific appetite for risk access to institutional level investments.