ALTERNATIVE INVESTMENTS

Whether you invest by yourself or with an investment advisor, you most likely have money in some form of stocks, bonds and mutual funds. However, if that is are all you are using as investment vehicles you may be overly exposed to correlation and the emotions of the market.

The use of illiquid investment vehicles can enhance diversification and reduce correlation to market volatility. Historically these types of investments were only available to the uber wealthy and required seven figure minimum investments. Over the past decade, investments in real assets and private equity have become increasingly more available to the retail investor with minimums as low as $2,000.

These investments are broadly referred to as “Alternative Investments” in the same way that stocks, bonds and mutual funds are broadly referred to as “The Market”. Investing successfully in either category requires specialized knowledge, skilled analysis, diverse selections and deep due diligence.

If you are interested in real estate investing, some of these investments can provide a more diverse and indirect solution.

At TADA Wealth Advisors, we know and understand the intricacies of alternative investments and help our clients construct a portfolio that compliments their stock, bond and mutual fund portfolios. As the portfolio managers at Ivy League University Endowments such as Harvard and Yale understand, increased diversification across non-correlated asset classes may provide increased downside protection against the volatility of the equity and fixed income markets. Our team will work with you to create your individual Endowment Model Portfolio to further diversify your investments.

Our alternative and direct real estate investment portfolios are constructed using a hands-on process. Unlike many advisors in the large financial firms, our independence allows us to conduct on-site due diligence and get to know the investment companies on our alternative investment platform at a very deep level.

We visit their offices, meet with executive management, see their real estate investments in the field, listen to their conference calls and read their public and private filings. This approach allows us to really get to know these businesses and provide you with direct access to investment opportunities.

Some examples of the alternative investments we have offered in the past are direct investments* in:

  • Full-Service Hotels
  • Select Service Hotels
  • Self-Storage Facilities
  • Apartment Buildings
  • Large Warehouse & Fulfillment Facilities
  • Office Buildings
  • Oil and Gas Wells
  • Seniors Housing Development Projects
  • Middle Market Private Equity and Debt

This approach brings a much deeper level of diversification to your portfolio and allows you to invest in a manner more aligned with a large endowment or pension fund. We believe this mitigates portfolio volatility and increases the probability of tax efficient stable cash flow from core businesses in our economy.

Through our Broker Dealer, Concorde Investment Services, an Inc. 5000 Fastest Growing Company in America*, we have access to over 50 specialty alternative investments programs.

Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses.  They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested.

Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.