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Thomas “Tom” Finke brings more than 30 years of banking and investment industry experience to Barings, LLC, as CEO and chairman of the firm. Over the course of his career, Thomas Finke has become experienced with everything from the securitized market and high-yield loans to multi-asset and alternative investments.
Since alternative investments cover such a large range of investment opportunities, there are many myths and misconceptions about them. Here are just a few examples:
They Increase Risk
Alternative investments do not increase traditional risk. However, this does not mean these investments are entirely without risk. Depending on the specific asset class or investment vehicle, risks and returns vary. Some alternative investment classes are safer than others, so it is important to do your due diligence prior to selecting any investment.
Alternative investments do not increase traditional risk. However, this does not mean these investments are entirely without risk. Depending on the specific asset class or investment vehicle, risks and returns vary. Some alternative investment classes are safer than others, so it is important to do your due diligence prior to selecting any investment.
They Are Expensive
In the past, alternative investment classes were usually restricted to high-earning investors, but this is no longer the case. Thanks to more recent legislation, access to alternative investment opportunities has become much more wide-reaching, with shorter investment duration and lower minimums.
In the past, alternative investment classes were usually restricted to high-earning investors, but this is no longer the case. Thanks to more recent legislation, access to alternative investment opportunities has become much more wide-reaching, with shorter investment duration and lower minimums.
They Aren’t Liquid
Again, this depends on the specific investment. Certain alternative investments are very liquid and will give investors cash every day. Meanwhile, others lock in investor money and may only grant investors returns every month, or even less frequently.
Again, this depends on the specific investment. Certain alternative investments are very liquid and will give investors cash every day. Meanwhile, others lock in investor money and may only grant investors returns every month, or even less frequently.
