Alternative Alternatives

Alternative Alternatives is a term used to describe investment options beyond traditional asset classes (such as stocks and bonds) and "traditional" alternative investments like hedge funds, private equity, real estate or venture capital.

NOTE: The United States Patent and Trademark Office lists ALTERNATIVE ALTERNATIVES as a Word Mark by (REGISTRANT) Wood Creek Capital Management LLC LTD LIAB CO DELAWARE Connecticut Financial Center 157 Church Street, 20th Floor New Haven CONNECTICUT 06510 (link to search: for the following Goods and Services: IC 036. US 100 101 102. G & S: Financial services in the nature of an investment security; financial services, namely offering and administering non-traditional investments in the areas of non-bank finance, real asset investment, intangible assets, intellectual property and royalties, and non-financial securities trading. FIRST USE: 20070101. FIRST USE IN COMMERCE: 20070101.

While there is no settled consensus on the boundaries of the alternative alternatives universe, it is usually taken to include investments outside of traditional securities markets investments that have no, low or negative correlation to broader markets, and/or inflation-hedge characteristics, and/or alternative motive.

Already in 2005, the INVESCO and FRCs European Institutional Asset Management Survey noted (page 16) that alternative alternatives are the fastest growing asset class among Continental Europe's institutional investors:

Consulting firm Oxera has dedicated a chapter on alternative alternatives in its report to the European Commission "Current Trends in Asset Management (2006, page 73): , referring to the Invesco report above.

Examples of alternative alternatives include:

1. insurance linked securities
2. timber
3. real estate and property
4. asset/ loan-based lending strategies
5. micro finance
6. entertainment finance
7. trade finance
8. litigation claims
9. insurance claims
10. intellectual property rights such as patents
11. commodity trading, natural resources
12. weather derivatives
13. carbon credits
14. niche assets and collectibles such as wine, art, stamps, violins
15. hybrids - PIPEs, SPACs, PPPs

Often also included are investments in themes that hold future prospects such as infrastructure, agriculture, renewable resources, alternative / green / clean / bio energy.

Consulting firm Mercer has dedicated a section of their website to Alternative Alternatives, see here for more: Introducing the "alternative" alternatives

Alternative investments sell out - article from publisher Moneymanagement.com.au:

In May, the CAIA (Chartered Alternative Investment Association - link: ) curriculum survey focused on the growing area of “alternative alternative” or “alt-alt” investments, link to survey:

A large list of alternative alternative investment options can be found on research firm Opalesque's A SQUARE directory (A SQUARE A² Alternative Alternatives) .

Article: "The rise of alternative alternatives" from publisher IPE: link to article

See Also

InterQuest Group
Nancy Donohue
Swiss Finance Academy
The alternative investment landscape
Tigris Financial Group Ltd.

< Prev		Next >

[ Back ]

Main Menu