Hedge Fund AssetsHedge fund assets can vary depending upon an investment manager’s investment strategy. The most common assets are stocks, bonds and cash which are viewed as highly liquid assets. Alternative assets, which are non-traditional assets that would not be found in a typical investment portfolio, are considered to be less liquid than common or traditional assets. Examples of alternative assets include real estate, commodities, artwork, venture capital, rare coins and derivatives. Diversification is the main advantage of including alternative assets in an investment portfolio; however the major disadvantage is liquidating those assets. Hedge funds are sometimes called alternative assets or investments themselves however they are not. A hedge fund is an investment vehicle that has the ability to invest in alternative assets due to light regulation. Below are some of the more popular alternative assets that hedge funds incorporate into their investment strategy to maximize profit:
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