Modernize Any Portfolio
The average investor is likely underexposed to alternative
investments, which can significantly impact their overall portfolio
performance. While professional investors allocate approximately 40-50% of their assets to alternatives, the stark contrast reveals that the average investor typically has only around 5% exposure to these diverse asset classes. This sharp contrast highlights a missed opportunity for those who could greatly benefit from diversifying their portfolios beyond traditional stocks and bonds.At Three Pillars Wealth Management, we specialize in helping
our clients navigate these opportunities, offering the expertise and resources needed to invest in alternative assets. With our guidance, you can increase your exposure to private equity and other alternatives, enhancing your portfolio and tapping into unique sources of returns. Let us help you embrace alternative investments and unlock the potential they hold for your financial journey.
Strong Risk Adjusted Returns
Alternative investments provide the risk-adjusted return most portfolios are missing. Take a look at Private Equity funds - they consistently outperform the public markets, with the top performing private equity funds vastly outperforming public equities.
Private Equity Funds stand apart from public markets by offering access to investment opportunities that often involve direct involvement in privately held companies. These investments typically target long-term growth strategies, leveraging operational improvements, industry expertise, and strategic initiatives. Unlike public equities, private equity funds have the flexibility to focus on specific sectors or markets, allowing them to navigate economic cycles and create value even during challenging periods. This approach provides investors with exposure to a diverse range of companies and sectors, many of which are not available in the public markets.
How alternative assets can diversify your portfolio
Six stocks now contribute to 30% of the S&P 500's returns, leading to significant concentration risk for those solely investing in public markets. Since the majority of U.S. companies remain privately held, alternative investments offer a way to hedge against market downturns by reducing correlation and enhancing true portfolio diversification.
Most investors are limited to the public markets, which make up only about 1% of all available investment opportunities. The remaining 99%—alternative investments like private equity, venture capital, real estate, and hedge funds—are typically out of reach for the average investor due to high barriers to entry. At our wealth management firm, we bridge that gap by providing access to these exclusive opportunities, enabling you to modernize your portfolio with investments that were once only available to large institutions and ultra-high-net-worth individuals.