Finance glossary
Alternative Investment
Definition
Assets outside stocks, bonds, and cash.
Alternative investments include private equity, hedge funds, real estate, commodities, art, and collectibles. They can diversify a portfolio because their returns often move independently of public markets, but they tend to be less liquid, less regulated, and harder to value.
In a sentence
Seeking returns uncorrelated with stocks, the endowment poured money into alternative investments like private equity and art.
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