prosper and come out tops in the market. Eventually, they open the hedge fund to others who wish to invest and participate in the profits.
According to expert Real Estate Analyst, Joshua Kenno, a Hedge Fund Manager raises money from outside investors and invests those funds according to whatever strategy they ' ve promised to use.
He says, there are hedge funds that“ specialise in long-only equities, meaning they only buy common stock and never sell short, engage in private equity, which is the buying of entire privately-held businesses, often taking them over, improving operations, and later sponsoring an initial public offering, trade junk bonds, specialise in real estate and hedge funds that put money to work in specialised asset classes such as patents or music rights.”
Benefits
• Flexibility
• Aggressive Investment Strategy
• Increases diversification chances
• Loss reduction
Tangible Asset Investing Commonly referred to as just alternative investments, tangible assets are physical investments, these include real estate, gold bullion, art, antiques and other collectibles.
These asset classes tend to have little positive correlation with the stock and bond markets and an investment in tangible assets could reduce your exposure to overall market risk in a way that most intangible assets cannot.
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Benefits Multifamily Investing( Real Estate) Advantages to investing in tangible assets include, the ability to add value directly to the asset, the ability to acquire undervalued assets, and the ability to leverage the investment through financing.
Value Add Multi Family real estate investments offer operators the ability to add value directly to the asset through both physical and operational improvements. Value can be added through operational improvements as well.
Acquiring Under Valued Assets The ability to acquire assets under market value is a major advantage to investing in multifamily real estate.
Leverage While most investments are all cash investments, multifamily investments can be leveraged with debt financing. While interest rates remain low, the ability to borrow against an asset at a rate lower than the asset appreciates adds tremendous value to the investment.
Better rewarding investment ventures are definitely not limited to Alternative Investment vehicles, nor are Alternative investment vehicles limited to the ones mentioned above.
Moreover, if you are interested in alternative investments, you should carefully consider the pros and cons of these types of investments. They are often not as straightforward as other assets and therefore require more research before getting started. Do it now and keep investing!
SOURCES PIMCO, VentureChoice, SIMEKA, FinanceManagament, Joshua Kennon, Wealth Migratev
SA Real Estate Investor Magazine MAY 2021 15