Unique Opportunities

In an effort to increase your portfolio's expected return, we may periodically include securities in our portfolios that are less liquid than the investments that form the core of our portfolios. Other opportunities typically include closed funds and alternative investments (typically real estate or other limited partnerships.)

Closed end funds offer unique opportunities because like other stocks, their prices are determined by supply and demand. The price of a closed-end fund may be less than its net asset value (the value of the underlying assets), and in that case, it may represent a unique buying opportunity. In effect, you may have the opportunity to buy the fund for less than the value of the underlying investments. If the price converges to net asset value, the investor earns extra return relative to the performance of the underlying assets.

In addition, we may propose that our larger clients invest a small portion of their portfolio in limited partnerships. Because limited partnerships are illiquid, we recommend that only a small portion of one's investment portfolio be invested in limited partnerships and we verify that the investor has no imminent need for funds that are included in your portfolio, limited partnerships are judged by their ability to increase the portfolio's expected return or lower the portfolio's risk.