“They contain a sufficiently large percentage of liquid assets” So is real estate not an asset class? Private equity? What am I missing?
Does anyone have any input on this, I understand real esate can be liquid with REITs. But private equity/hedge funds are not really liquid (so they are not asset classes) or do you group alternative investments in one asset class and say they are sufficiently liquid since commodities/reits are liquid?
I guess due to their illiquidity, that is why they are called alternative asset class.
While in the text it says asset classes contain a sufficiently large percentage of liquid assets, so my question is, is alternative assets an asset class?
Alts are definetely an asset class…go ask Swenson. Real Estate Hedge Funds Private Equity Commodities They are, in general, illiquid. But if you are talking Gold ETFs or public REITs on the US exchanges, then there is liquidity there PE, HF, Private RE…definitely illiquid…I don’t care what the CFA says
Let’s see… 1. Asset should share similar characterisitcs 2. Asset can’t be reasonable placed into mulitiple asset class. 3. Asset class should have low correlation 4. Asset class should provide diverisfication benefits. 5. Liquidity. I think alternative asset class is the class, PE, HF and RE are the sub-class under Alternative asset class.
Ok the only way it makes sense is if you look at alternative assets on a whole and assume they are sufficiently liquid, that is what I am going with.
the liquid requirement is to rebalance if needed