Alternative Investments

Alexander Alternative Capital, is not only dedicated towards offering the ability to invest and receive investment information efficiently. We also offer alternative forms of investing, such as our Special Situations Strategy. Which is a macroeconomic strategy centered on an asymmetric investment profile with the ability to deliver out-sized performance.

How We Are Different

Most traditional forms of sourcing high quality investments are currently inefficient. Accredited investors, or 8.7 million U.S. households, are presented with fewer and fewer well performing managers to help them generate alpha or out-sized returns.

These households are rarely presented with the ability to invest in alternative investment strategies. Instead, they are guided to either:

  1. Invest all alone, by opening a basic brokerage account.
  2. Invest through a Financial Advisor.
  3. Invest through a Registered Investment Advisor.

How Do You Make Alternative Investments?

1. Well how about investing on my own?

We welcome you to try because it is an amazing experience. However, in a couple of years the majority that do try will find that it is frustrating, time consuming, and that you may lose a lot of your hard earned money because of the complexity of properly managing risk in a portfolio. I mean what results would you expect if you pulled your own teeth or did your own electrical wiring. It’s difficult to expect individuals without investment experience to reap the same results as a professional investor or money manager.

2. What about financial advisors or traditional stock brokers?

The problem with an advisor is that they are mainly concerned with “managing” your money. This means that they don’t really focus much on generating out-sized returns.

What do we mean? We mean that advisors gain the majority of their wealth through the management fees that they charge. In turn developing a mindset, “The more capital I have to “manage”, the more wealth I can generate for myself through fees.” This leads to advisors focusing primarily on raising assets, rather than alpha. As the more money that they get under management, the more money they make.

Traditional brokers get paid by generating commissions, typically churning the investments because of misaligned interests.

Both investment models have significant limitations and the alternative investments are typically ignored and overlooked. If a financial advisor recommends a hedge fund, P/E fund, or alternative investment, it is usually because of assets under management not the merits of the investment. Which is not how the alternative investment industry found its origins.

Deconstructing Management Fees in Alternative Funds
What about their investment performance?

They may have some good investment ideas, and they should, as they are being paid to earn money with your money. Even if the advisor does perform well they will typically stick with market beta and asset allocation. Allowing the markets and asset allocation to drive performance. This also does not consider events that cause correlation where these models break-down and investors lose significant assets.

3. How about investing in Hedge Funds?

Some may believe that hedge funds are the answer, but the hedge fund industry has changed drastically over the years. Many of the hedge funds today and other asset pooling structures are not following the ways in which the industry originated.

How has the hedge fund industry has evolved?

Many and most of the money managers today have fallen into a unilateral mindset in which they believe that financial management should be management fee oriented and as well should have a little extra-added bonus for performance. Since this is the case we have come up with a solution of our own, The Special Situations Strategy. This strategy will allow individuals and institutions to make alternative investments and generate high yield returns.

Our Solution to Making Alternative Investments

To provide a solution to investor’s Alexander Alternative Capital has developed The Special Situations Strategy. A strategy that refuses to follow the unilateral mindset currently found in the industry. One that will charge fees that are based solely upon how well we perform for investors, oppose to how well we “manage”. The Special Situations Strategy is not just a strategy, but also a solution to align the interests of both parties. We offer alternative investments without the downside.

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