A Focus on the Middle Market
In today’s environment of low interest rates and uncertain economics, investors are challenged to find return-enhancing investment vehicles that fit their risk parameters. Simultaneously, they are seeking asset types that have a low correlation of returns versus their existing allocations.
Alternative investments are increasingly being employed to accomplish these objectives.
Mainstream alternatives may fall short of return expectations, however, when fund sizes reach into the billions of dollars. Simply put, to deploy such large sums, funds cannot be as selective, eventually driving down average returns. Such funds often have very high minimum investment levels that are out of reach of many high net worth investors and their advisors.
A better approach is to seek out niche strategies whose returns are driven more by execution at the micro level than by trends and fundamentals at the macro level. Such characteristics are inherently more likely to produce returns that are less correlated with those of the listed equity markets. And so- called “lower market” investment vehicles that retain flexibility and nimbleness can pursue opportunities that would not be feasible for larger funds. The inefficiencies present in the lower market simply do not move the needle for them.
Altera Investments has established its niche in lower market investment opportunities where these characteristics are evident and can drive returns and determine risk characteristics. A few examples will shed further light on this approach:
Altera’s specialty in off-the-beaten-path alternative investment opportunities in the middle market complements investor allocations to mainstream alternative and public market investments. We work with family offices, high net worth investors and registered investment advisors who value our unique perspective and deal flow.
We welcome the opportunity to discuss how this approach might complement your current allocations.