Investing in hedge funds, private equity, private credit and real estate funds has long been a part of sophisticated client portfolios and for good reason. They can be an attractive long-term complement to a traditional public stock/bond allocation.
Alternatives can open the door to enhanced investment returns and portfolio diversification. Our platform draws upon the knowledge and experience of a global team of investment and due diligence professionals. We partner with key industry players to bring current investment trends to you. You also have access to investment managers who may influence change and drive performance in private companies, typically not possible in public companies.
Hedge funds and private investments
Morgan Private Ventures
Morgan Private Ventures offers a small group of qualified investors entree into exclusive, high quality private investments.
Hedge funds (or funds of hedge funds) often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; are not required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. Further, any number of conflicts of interest may exist in the context of the management and/or operation of any hedge fund. While investments in private equity funds provide potential for attractive returns, access to opportunities not available in the public markets and diversification, they also present significant risks including illiquidity, long-term time horizons, loss of capital and significant execution and operating risks that are not typically present in public equity markets. Private equity funds typically have a 10-15 year term and will begin to monetize investments after holding them for 4-5 years.
Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments involve greater risks than traditional investments and should not be deemed a complete investment program. They may not be tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain. The value of the investment may fall as well as rise and investors may get back less than they invested.
Broadening a seasoned investor’s alternative investment horizons
Building a well-diversified portfolio of stocks and bonds is a time-tested way to invest. In many cases, adding alternative investments can create the potential for more consistent and stronger returns over time. But even experienced investors can be unsure about how alternatives fit into their plans. That’s where J.P. Morgan can help.Read More