Alternative Investments

Abstract

In today’s sophisticated investment environment, traditional securities no longer have the exciting traction they used to have. For sophisticated investors such as hedge funds, even derivative products are considered typical, mainstream instruments. The continuing appetite for other types of investments has led to the search for and designation of alternative investments. In this chapter, the increasing popularity of and the desire for these new investment areas are explored. The fundamental characteristics of these alternatives are presented. Specifically, real estate in forestry, undeveloped land, many forms of art and antiques, structured innovative securities, environmental products, non-fungible tokens (N.F.T.s), metaverse real estate, other metaverse investments, and investments in innovative ideas are examined in depth. The professional organization in this area, the Chartered Alternative Investment Analyst (C.A.I.A.) Association is introduced, along with detailed information about how to become a full charter member. The chapter concludes with a real-life project where the portfolio professional (the reader) investigates the profit potential of a portfolio purely based on different types of alternative investments.