According to a new report by the research firm Cerulli Associates, advisers are increasingly recommending alternative strategies to their clients, including retail clients, with 25 per cent reporting that they have plans to increase their allocations to alternative offerings. The fact of the matter is that there is a lot of benefits to alternative investments, including: relatively high degree of transparency, liquidity, and the costs are much lower. These advantages make it possible for almost anyone, with even a small amount of capital, to invest in alternatives.
"In 2009, we had $500 million in alternative mutual fund assets ... Today, it's $1.5 billion, and that's just adviser-directed. So that's a three-fold increase, and it doesn't include alternative allocations within firm-based models, which have also grown."- Co-Head of Alternative Investments at Raymond James.