Investment categories other than traditional securities or long-only stock and bond portfolios; they include hedge funds, venture capital, private equity, and real estate. Alternative investments often employ strategies typically unavailable to long-only managers, such as the use of derivatives, the ability to short, and the ability to hold illiquid assets.
Alternative investments tend to be less liquid, exhibit lower correlations with public markets, and are generally constituent of less efficient private markets.
Investments offered through real estate platforms like EQUITYMULTIPLE, or equity crowdfunding platforms, are typically regarded as Alternative Investments.
For further discussion of alternative real estate investments, please refer to this article.Back to Glossary