Over the last decade, there has been more interest in alternative investing because of the potential for outsized returns and the low correlation with traditional investments. Unlike other investment consulting firms that have gotten involved with investing in alternative asset strategies in recent years, the principals of Lowery Asset Consulting have had significant experience in this arena dating back to the late 1980s. We’ve learned that successful investing in hedge funds, private equity, real assets and other non-traditional investments requires considerable experience, a broad industry network, and a healthy dose of skepticism.
Currently, Lowery clients have over $500 million allocated across various alternative investment strategies: MLPs, options strategies, hedge funds, private equity, real estate, commodities, and more. In addition, we have several client relationships focused solely on employing alternative investment strategies. In these assignments, we have helped construct highly customized programs.
Our deep experience with non-traditional managers and strategies has enabled us become a recognized leader in liquid alternatives. We have been actively engaged in the due diligence and incorporation of liquid alternatives for years. And we seek out those strategies that can offer the key benefits of less liquid alternatives (i.e., absolute returns and low correlations), yet with the regulation, transparency, and liquidity that investors require.
In addition to the team’s depth of experience, Lowery’s open door policy with respect to investment manager meetings has helped the team develop a broad industry network. This is critical to our clients’ success because many alternative investments are not found in databases. We use our 1,000+ annual meetings to source new managers for clients and to challenge our views on the current investment opportunity set. Without this broad industry network, we would be operating while wearing blinders.
Maintaining a healthy skepticism toward alternatives
We recognize that a well-constructed, non-traditional investment can offer significant diversification benefits, and/or the potential for higher returns than found in traditional asset classes. That said, we are more skeptical of alternative investment managers than their equity and bond counterparts. In a lightly-regulated, often opaque structure, there are many opportunities to take advantage of investors. Many alternative investments are simply clever pricing schemes that enrich the money manager. This is why we’ve established a strong knowledge of liquid alternatives. We believe that non-traditional investments should be utilized only when they can demonstrate safeguards in such areas as governance, transparency and regulatory oversight. And because we are generalists, our incentive is to identify the best and most appropriate investments regardless of which asset class or vehicle type they represent.
To learn how you might benefit from Lowery Asset Consulting’s long-term expertise with Alternative Assets, contact us today.