Liquid and illiquid alternative investment
Clifford Beaumont provides private investors and their families with access to a broad range of liquid and illiquid alternative investment opportunities.
Such opportunities have, in the past, been restricted to larger investment houses and institutions. However since investor preferences have been forced into a period of change, the alternative investment landscape has evolved in order to attract the attention of retail investors.
Alternative diversification strategy
Alternative forms of investment are increasingly becoming part of contemporary portfolio theory as assets are diversified to reduce levels of correlation from one asset class to the next.
Traditional portfolios composed of stocks, bonds and cash, typically provided an acceptable correlation mix to facilitate performance irrespective of market conditions.
In the current economic climate, the correlation between equity and bond markets does not provide a portfolio with the necessary protection required to withstand fluctuating conditions.
Mitigating the effects of risk
Incorporating alternative forms of investment as part of a diversified portfolio seeks to spread investment risk across a much broader range of assets.
Real assets, hedge funds and specific credit opportunities bear little or no relation to the performance of traditional equities and bonds.
An additional layer of portfolio diversification has been proven to stabilize portfolio performance against the effects of volatility.