Alternative Asset Analysis (AAA) has revealed that as the number of people opting for more mainstream alternative investments increases, so does the number of people opting for the more extreme end of alternative investments.
Boston, MA, USA, June 30, 2011 -- Alternative investment advocacy organization, Alternative Asset Analysis (AAA), says that as the number of people opting for more mainstream alternative investments increases, so does the number of people opting for the most alternative side of alternative investments.
AAA’s analysis partner, Anthony Johnson, stated, “People are becoming more and more willing to try the alternatives market and some are looking into some really unusual investments to try to make a fortune – and good luck to them, sometimes it pays off!”
An example of this is the case of one Don Poffenroth who became tired of watching his $400,000 investment gain returns of between 3 and 5 percent. CNN Money reports that in 2007 he opted to take his money and invest $300,000 in a vodka distillery in the US. The distillery was one of just a small number in the whole of the States at the time and his risk paid dividends. The distillery is now raking in annual revenues of $1.5 million and Poffenroth’s 60 per cent stake is worth $1.2 million.
AAA says that a recent Russell investments’ survey found that investment in alternatives is set to grow to an average of 19 per cent of portfolio by 2012, from current levels of 14 per cent. “This positivity towards alternative assets is due to the fact that people are increasingly approaching their fund managers and asking them to diversity their portfolio to spread the risk,” claimed Johnson. “No one wants to be caught out again and investing in alternatives protects cash form the impact of wider economic factors,” he added.
For those who are keen on taking a leap of faith into the alternatives market, but are not quite in the position to risk it all on a vodka distillery, forestry investment in emerging markets is a sensible option, claims AAA. Firms like Greenwood Management offer people with as little as $10,000 to invest, the chance to own a piece of forested land in Brazil. They then get to watch their investment literally grow while feeling confident that their investment is also helping to prevent deforestation and help the Brazilian economy to flourish.
Many high net worth individuals around the world are also looking to include (quality) art as an important string in their investment bow. In a recent survey of high net worth individuals Merrill Lynch and Capgemini noted that art is the most likely 'investment of passion' to be seen as a form of financial investment. The same survey – the 2011 World Wealth Report – noted that alternative investments were up were up from five per cent of total portfolio value in 2009 to seven per cent in 2010, with this forecast to rise to as high as nine per cent in 2012.
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