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