Alternative Investments

An investment that is not one of the three traditional asset types (stocks, bonds and cash). Alternative investments include hedge funds, managed futures, real estate, commodities and derivatives contracts. Alternative investments are favored mainly because their returns have a low correlation with those of standard asset classes.

When determining the appropriate allocation to alternatives, it all starts with the client. Each client has unique needs and circumstances in several areas: their tax situation, their liquidity preferences and needs, their return objectives and risk thresholds. Those are just a few of the characteristics that really have to be determined.


Historically real estate funds performances have stayed consistent with the mainstream economic climate. Unlike other traditional investments during periods of inflation and economic growth, real estate will typically yield high returns. Real estate funds have been out performing bonds, CDs, and the stock market since the early 1970s. The residential and commercial real estate sector has experienced periods of expansion and contraction not unlike all of the other sectors in the economy.

Mestmaker & Petrey has the ability to offer an array of Traded and Non-Traded Real Estate Investment Trusts. These can be purchased in all account types and most have low minimum investment entry points thus making it more accessible to the average investor. These funds offer our investors unique investment opportunities, in addition to their traditional stock and bond portfolios.

Long – Short Mutual Funds:

Long/short equity managers typically take both long and short positions in equity markets. The ability to vary market exposure may provide a long/short manager with the opportunity to express either a bullish or bearish view, and to potentially mitigate risk during difficult times.

Commodities / Precious Metals:

Investors seeking broader diversification should consider commodities and more specifically precious metals. At Mestmaker & Petrey we can determine which investment is best suited for your personal portfolio.