Alternative Investments

An Alternative Approach to Investing

Hightower Bethesda follows the Endowment Model Approach, a method of investing coined by large institutional investors use of alternative investments in their portfolios. These alternatives generally include Hedge Funds, Private Equity and Private Real Estate. Traditionally these types of investments have very high minimums and long holding periods, which had precluded an individual from being able to have access to these types of investments. However, for institutional investors, endowments, pensions etc., alternative investments have been widely adopted for regular use for 30 plus years. 

At HTB we feel the challenges are more than offset by the improvement in the individual client’s overall investment experience, both in terms of overall return and experience felt by the investor to generate that return. 

Our goal at HTB for our client’s portfolios is to protect their capital and grow their investments through steady rates of return. We do this by allocating a meaningful amount of our client’s portfolios to alternative investments. Most of our alternative investments have low correlation to traditional investments – equities and bonds. This means our clients don’t have to solely depend on markets going up to make money in equities and interest rates going down to make money in bonds. 

This approach, much like a 3-legged stool, can help provide improved stability in an individual’s investments – equities, bonds and alternatives.