Investment Alternatives - A Guide to Investing in Alternatives
DGC Asset Management provides Investors and Financial Advisors with access to market-leading Asset Class Analysis Reports and opportunities to invest in real-asset alternative investments with a particular focus on heavily discounted, high-yield real estate, and productive natural resource properties with a target annual yield of 10 to 15 per cent. Join as a Free Member of our website for instant access to our range of Research Reports and Investment Opportunities.
Alternative Investment Products
With such a broad range of alternative investing opportunities to consider, from fine wine to forestry, the market is awash with products offering smaller Investors participation in a range of niche or esoteric asset classes, yet a lack of credible research and due diligence has left many exposed to poor management, bad value and in some cases, outright fraud.
By providing a credible, central point of reference, DGC seeks to facilitate well-informed investment decisions amongst Investors and Financial Advisors seeking to diversify and optimise the performance of traditional investment portfolios through the acquisition of real-asset alternatives to stocks, bonds and cash.
Furthermore, the company aims to add considerable value to the investing process through access to an extended network of professionals operating a grass roots level in all of the sectors in which the company operates, allowing the Management Team to identify off-market investment opportunities, capture and enhance value through the application of a comprehensive due diligence and risk analysis standard, and realise value through enabling an investment exit in line with the Client goals.
Login or Join as a Free Member for instant access to our own portfolio of real-asset alternative investments, and a range of useful tools and resources.
Types of Alternate Investments
There are two broad types of asset that offer a mutually exclusive alternative to stocks, bonds and cash; real-asset investment alternatives; and financial investment alternatives.
Real Asset Alternatives
This category can include any physical asset acquired for it’s capital growth or income potential, where the Investor acquires direct or beneficial ownership of underlying assets and can include:
- Land
- Property
- Rare Items (fine wine, stamps, coins)
- Precious Metals (gold, silver, palladium)
- Forestry Properties
- Commodities (oil, gas, soft-commodities such as wheat or maize)
- Renewable Energy (biofuel crops, wind turbines, solar panels)
Financial Alternatives
This type of alternative investment asset class can be stocks, bonds, cash or any other financial instruments, which are in turn managed using often complex and opaque alternative investment management techniques such as market neutral, absolute return, or long/short.
- Short Only Funds
- Ultra-Short Funds
- Market Neutral Funds
- Absolute Return Funds
- Long / Short Funds
- Hedge Funds
- Private Equity / Venture Capital
Note: There are many options for smaller Investors to participate in real-assets through securitized vehicles such as Property Funds. The cash flow dynamics of securtized investments can be markedly different from direct investments in underlying assets. For the sake of clarity, DGC Asset Management considers securitized investments as financial assets; and direct investments in physical properties as real-asset investments.
Positive Traits of Investment Alternatives
Investors will consider invest in alternatives for a number of reasons, primarily because these assets display certain positive characteristics such as:
- Low or negative correlation with the performance of traditional assets
- The ability to generate regular income
- The potential for very high returns
Negative Traits of Investment Alternatives
Alternative investments also display certain negative characteristics of which potential Investors must be aware, such as:
- Some assets may be relatively illiquid, sharing similar liquidity profiles to property
- Asset valuations can be difficult
- There may be limited historical data about risk and return for a particular asset class
- A high degree of investment analysis may be required before buying
- Costs of purchase and sale may be relatively high
By forming strategic partnerships with professionals operating at the grass-root level in the sectors in which we operate, we are able to add considerable value to the research and selection process for our Members and Clients by leveraging our strategic Partners in order to identify the best opportunities, whilst concurrently identifying and managing sector, location, asset-specific and counterparty risk through the application of our proprietary due diligence model.
Login or Join as a Free Member for instant access to our own portfolio of real-asset alternative investments.
