Alternative investments include asset classes, strategies, and structures that can help diversify a traditional portfolio through the types of investments owned or the techniques employed. There are a variety of alternative investments; among the most popular are alternative mutual funds, hedge funds, and private capital.

Our series “Alternative Thinking” overviews what alternative investments are and how they can play a role in better diversifying a portfolio, which may help improve its performance.

Transcript: Alternative Thinking

History has shown that diversification-including different asset classes in a portfolio-has generally been an effective strategy to help manage risk or volatility in a portfolio. But, it's not surprising that in our low-yield, and increasingly volatile markets, many investors have been rethinking their traditional portfolio construction, and wondering if there's a missing piece to their current asset allocation. One they could use to potentially help smooth out market ups and downs. The missing piece could be an Alternative Investment. 

Alternative investments can refer to asset classes or strategies and ordinarily include investments other than stocks, bonds, and cash. Alternative investments provide different performance characteristics and can deliver different benefits in a portfolio. Adding them may actually complement a portfolio of traditional asset classes and can provide investors with the benefits of enhanced diversification. 

To find out if alternative investments are right for you, download our special Wells Fargo Investment Institute educational series: Alternative Thinking.

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Alternative Investments: The Missing Piece in Portfolios?

Learn why Wells Fargo Investment Institute believes many investors can benefit from an allocation to these diversifying strategies. 

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The Case for Alternative Investments Today

Find out why we think the current economic and market environment makes alternative investments attractive.

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Private Capital may Unlock Significant Opportunity

Read about private capital and how it gives investors access to privately held companies.

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Hedge Funds can Add Another Dimension to Portfolios

Learn how hedge funds have historically have been used to help reduce risk and enhance returns in a portfolio, especially during down markets.

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Alternative Mutual Funds Open the Door to More Investors

Discover what alternative mutual funds are and why they may fit into your portfolio.

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Alternative Investments May Improve Portfolio Results

Find out why true diversification goes beyond stocks and bonds and how alternative investments may fill in the “missing piece” in a portfolio. 

Download the report (PDF)