Mezzanine financing offers a new opportunity for portfolio diversification.
Our resident investment fund expert, Ken Stern, discusses “Mezzanine Financing” in the December 2007 edition of “Advisor’s Edge”, a publication focusing on trends and strategies for successful advisors.
As a conscientious retail investment advisor, I’m always on the lookout for ways to improve portfolio diversification for my clients.
Bonds or fixed income, the traditional choices, do provide a modicum of diversity but they’ve been around forever and have limitations. It used to be an advisor could achieve the desired diversification, along with a modest return, from the fixed-income portion of a portfolio. However, with today’s low interest rates, and the fact that there’s very little incentive to use longer maturities to boost returns, I’ve been searching for something better.
Are they useful or just too risky? Our resident hedge fund expert, Ken Stern, says the right hedge fund can reduce the overall risk in your portfolio and maybe even enhance your return - but be very careful as pitfalls abound.
Reduce Risk in Client Portfolios using Alternative Investments. This presentation was originally given at the Million Dollar Round Table 2005 Annual Meeting in New Orleans. It was presented again in October 2005 ADVOCIS meeting.
Ken Stern, an advisor with Creative Planning and recognized expert in the hedge fund investment world, is quoted extensively in an article by Rob Carrick in the Toronto Globe and Mail newspaper.
