--- title: Alternative Investment Strategies description: Serious & savvy investors might want to veer off from traditional investment types. Learn more about a few different types of alternative investment strategies. image: http://www.4tfg.com/hubfs/Blog/Alternative-Investment-Strategies.jpg --- [![4thought\_footer-logo.png](https://www.4tfg.com/hs-fs/hubfs/4thought_footer-logo.png?width=335&height=101&name=4thought_footer-logo.png "4thought_footer-logo.png")](https://www.4tfg.com/) - [![4Thought Financial Group](https://www.4tfg.com/hubfs/4thought_footer-logo.png)](https://www.4tfg.com/) [![4Thought Financial Group Compass](https://www.4tfg.com/hubfs/4Though-Compass.png)](https://www.4tfg.com/) - [About 4Thought](https://www.4tfg.com/investment-methodology) - [Our Investment Methodology](https://www.4tfg.com/investment-methodology) - [Management Team](https://www.4tfg.com/management) - [In the Media](https://www.4tfg.com/media) - [Contact](https://www.4tfg.com/contact) - [Services](https://www.4tfg.com/investing) - [Private Individual Investing](https://www.4tfg.com/investing) - [SMAs for RIA /Institutional /Family Office](https://www.4tfg.com/financial-advisors-and-institutions) - [Services for CPAs](https://www.4tfg.com/cpa-investing-services) - [Private Wealth Management](https://www.4tfg.com/wealth-management) - [Retirement Plan Services](https://www.4tfg.com/retirement-plan-services) - [Resources](https://www.4tfg.com/resources) - [Financial News](https://www.4tfg.com/resources) - [Portfolio Review](https://www.4tfg.com/portfolio-review) - [Investment Performance](https://www.4tfg.com/performance-requests) - [CPA Continuing Education](https://www.4tfg.com/cpe-continuing-education) - [FAQs](https://www.4tfg.com/faq) - [FAQs](https://www.4tfg.com/faq) - [Contact](https://www.4tfg.com/contact) - Log In - [Goldman Sachs Accounts](https://custodysolutions.gs.com/client-app) - [Wealth Management](https://wealth.emaplan.com/ema/SignIn?ema) - [Consolidated Reporting](https://client.myadvisorlink.com/auth/users/webportal/4tfg) - [Retirement Plan Services](https://www.4tfg.com/rps-login) - - Log In - [Goldman Sachs Accounts](https://custodysolutions.gs.com/client-app) - [Wealth Management](https://wealth.emaplan.com/ema/SignIn?ema) - [Consolidated Reporting](https://client.myadvisorlink.com/auth/users/webportal/4tfg) - [Retirement Plan Services](https://www.4tfg.com/rps-login) ## 4Thought Investing Resources # 4Thought Investment Resources [Financial News](https://www.4tfg.com/resources/) [Investment Strategy](https://www.4tfg.com/resources/topic/investment-strategy) [Personal Finance](https://www.4tfg.com/resources/topic/personal-investing) [Business Finance](https://www.4tfg.com/resources/topic/business-finance) [For Professionals](https://www.4tfg.com/resources/topic/financial-professionals)[Compass and Crosshairs](https://www.4tfg.com/resources/topic/compass-and-crosshairs) SUBSCRIBE Subscribe for free tips and articles to help you lead a smarter financial life. [Financial News](https://www.4tfg.com/resources) ,[Investment Strategy](https://www.4tfg.com/resources/topic/investment-strategy) # Alternative Investment Strategies Serious & savvy investors might want to veer off from traditional investment types. Learn more about a few different types of alternative investment strategies. \[fa icon="calendar"\] Jun 8, 2017, 11:33:37 AM by [4Thought Financial](https://www.4tfg.com/resources/author/4thought-financial) ![Alternative Investment Strategies](http://www.4tfg.com/hubfs/Blog/Alternative-Investment-Strategies.jpg) Info Sheet - PDF Download [![](https://www.4tfg.com/hubfs/Collateral/InvestmentMethodology.png "Effective Investment Methodology")](https://www.4tfg.com/hubfs/Collateral/Investment-Methodology.pdf) ### **4Thought Financial Group's Unique Investment Methodology** "In order to achieve life goals, one should diversify at the level of investment method, applying the most effective aspects of multiple, completely divergent methods of investing, and not be dogmatic about using a single method" [View the PDF](https://www.4tfg.com/hubfs/Collateral/Investment-Methodology.pdf) [Save the PDF](https://www.4tfg.com/hubfs/Collateral/Investment-Methodology.pdf.zip) [*Learn more about the 4Thought Financial Group Investment Methodology*](https://www.4tfg.com/investment-methodology) Stocks, bonds, mutual funds -- these are all typical investments with which nearly everyone is familiar. However, there are other investments available for investors who are looking for something less conventional. These investments are usually illiquid, harder to value, and potentially quite a bit riskier than conventional stock/bond investment strategies and in most cases are only available to “accredited” investors. But alternative investing may be a sound strategy for [savvy investors](https://www.4tfg.com/resources/unique-strategies-for-savvy-affluent-investors) who have the right professional guidance. Here's an overview of a few different alternative investment strategies. ## Private Equity While stocks are investments in publicly traded companies, there are also private companies who are looking for investors. One way you can find these opportunities is through a private equity firm or fund. ## Direct Investing If you don't like the idea of a private equity fund, you can also choose to invest directly in a private company. With this higher-risk strategy, you'll have to do the legwork on your own, but you may pay less for the opportunity. ## Venture Capital Venture capital investments are typically very high-risk, but when they do well, they tend to have high returns. These investments focus on early startups that operate with little more than a business plan. They typically have little to no revenue history, and they're looking for investors to help them grow. Proceed with caution, though. As the [Harvard Business Review](https://hbr.org/2013/05/six-myths-about-venture-capitalists) states, "\[M\]any more venture-backed start-ups fail than succeed." ## Real Assets These investments are called "real" because they're tangible assets. Everything from real estate to rare coins fall within this definition. As long as it's tangible and has value, it's a real asset. Because of the wide variety of real assets available, your options with this strategy are seemingly endless. Many investors choose a real asset that has meaning to them, either as a hobby collection or because of some personal connection. You can find these assets through a multitude of means, including auctions, direct purchases and investment firms. ## Hedge Funds Hedge fund managers offer a variety of investment types depending on the strategy used. These alternative investments are different from private equity and venture capital because they focus on publicly listed securities, and often use a somewhat unconventional approach to management, which may differentiate them from conventional stock/bond investments. Hedge funds are usually structured as an interest in a limited partnership, which generally makes them much less liquid than publicly listed securities purchased alone, but they are still usually somewhat more liquid than private equity, so you can cash out slightly more easily. Typical hedge fund strategies include equity long-short, distressed assets, arbitrage and macro-trends, amongst many others. ## Fund of Funds If you can't choose from these alternative investment strategies, a fund of funds may be the answer for you. These are large funds that invest in a portfolio of diversified alternative investments, possibly including a variety of some of the options already mentioned. ## Private Placement Debt Debt investments are one of the larger alternative investment types. You can invest in private placement bonds, which aren't available publicly. These are loans usually used to finance a private company. You may receive steady cash flow as a result, though you should note that these investments aren't required to have a credit rating by any reputable agency, and they may be subject to substantial risk of default. ## Final Thoughts If you’re interested in exploring options outside of conventional stock/bond investments and long for a different strategy that doesn't necessarily rely directly on market performance, alternative investments could be a great solution. Alternative investment options are practically endless, so you'll want to enlist the help of financial professionals to help you select and gain access to the most appropriate options. Given the wide range of options available in the space, they're worth a second -- or third -- look from any savvy investor who's looking for something new to add to the portfolio. ## Was this article helpful to you? ### Subscribe to our newsletter for free tips and articles to help you lead a smarter financial life. ### Related posts [![Bear, Bull, Wolf & Eagle: The Markets Reimagined & Redefined](https://www.4tfg.com/hubfs/Bear_Bull_Wolf_Eagle-The_Markets_Redefined.jpg)](https://www.4tfg.com/resources/bear-bull-wolf-eagle-markets-reimagined-redefined) [![Understanding Risk in Investing - Part 3 - Investment Methods and Risk Premiums](https://www.4tfg.com/hubfs/Understanding%20Risk%20in%20Investing%20-%20Part%203%20-%20Investment%20Methods%20and%20Risk%20Premiums%2010-13-20%20-%20Thumbnail.jpg)](https://www.4tfg.com/resources/understanding-risk-in-investing-part3-0-1-0) [![Understanding Risk in Investing - Part 2 - Modern Portfolio Theory Quantitative Tools and Statistics](https://www.4tfg.com/hubfs/BaseCamp_Archive/attachments/332823384-all-with-graphic.png)](https://www.4tfg.com/resources/understanding-risk-in-investing-part2-0-1) ## Leave a Comment ### Search 4tfg.com This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. ### **What Type of Investor Are You?** You have unique investment goals. 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Disclaimer [Form CRS, Firm Brochure (ADV Part2), Privacy Policy Notice, and Wrap Fee Program Brochure](https://www.4tfg.com/hubfs/Firm_Brochure_ADV_Pt2-Privacy_Policy-Wrap_Fee_Program_Brochure.pdf) [Disclosure](https://www.4tfg.com/disclosure) [BrokerCheck](http://brokercheck.finra.org/) Investment Advisory Services are offered through 4Thought Financial Group Inc., an SEC Registered Investment Adviser. Registration does not imply a certain level of skill or training. The content presented here is for informational purposes only and does not constitute a complete description of our investment advisory services or performance. This website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered (or notice filed) or where an exemption or exclusion from such registration exists. Information throughout this site, including, but not limited to, stock quotes, charts, articles or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. Neither we nor our information providers shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission thereof to the user. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY LINKED WEBSITE. Any opinions presented here are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. \*4Thought Financial Group claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. 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