Private Equity & Hedge Fund Corner

Investors looking for increased diversification within their portfolios find themselves faced with many options. A diversified portfolio can include many types of investments. Traditional financial assets include debt, equity, and cash. Alternative investments include exchange-traded funds (ETF), Re...

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Bibliographic Details
Published in:Journal of Passthrough Entities 2015-03, Vol.18 (2), p.21
Main Authors: Kot, Stan, Spence, Adam E, Ricketts, William
Format: Article
Language:English
Subjects:
Capital gains
Commodities
Commodity futures
Controlled foreign corporations
Diversification
Dividends
Earnings
Futures
Investment advisors
Investment plans
Limited liability companies
Master limited partnerships
Mutual funds
Net losses
Portfolio diversification
Portfolio management
Profits
REITs
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Summary:Investors looking for increased diversification within their portfolios find themselves faced with many options. A diversified portfolio can include many types of investments. Traditional financial assets include debt, equity, and cash. Alternative investments include exchange-traded funds (ETF), Real Estate Investment Trusts (REIT), Master Limited Partnerships (MLP) and many other investment vehicles. These investments provide many avenues through which an investor can find exposure to nonfinancial assets such as real estate and commodities including gold, oil and natural gas. Interest in diversification through commodities has surged in recent years. This article focuses on two possible means through which an investor can gain exposure to commodities through alternative investments: Commodity-Trading Mutual Funds and Commodity Pools, with an emphasis on the tax implications of both. There are many other factors investors and investment managers must consider when contemplating alternative investments. This article will also discuss those considerations.
ISSN:1099-7407