Alternative Funds

Alternative funds invest in assets outside traditional stocks and bonds, like real estate, commodities, and private equity, offering diversification and unique risk-return profiles.

What Are Alternative Funds?

Alternative funds are investment vehicles that allocate capital to asset classes beyond traditional stocks, bonds, or cash. These funds may invest in real estate, commodities, private equity, hedge funds, infrastructure, or even collectibles. The aim is to provide investors with access to a broader range of opportunities and strategies that are not typically available in conventional mutual funds or ETFs.

How Do Alternative Funds Work?

Like traditional mutual funds or ETFs, alternative funds pool money from multiple investors and are managed by professional fund managers. However, alternative fund managers have a wider array of tools and strategies at their disposal, including the use of leverage, derivatives, short selling, and investments in less liquid or private markets. Depending on the fund structure, investors may buy shares or units and participate in the fund’s overall performance.

Why Are Alternative Funds Important for Investors?

Alternative funds are valued for their ability to diversify a portfolio and reduce correlation to broader equity and bond markets. They can offer exposure to unique sources of return, help manage risk, and provide tailored risk profiles depending on the strategy and mandate. For institutional investors and family offices, alternative funds can be a way to access specialized expertise and investment opportunities that are otherwise difficult to reach.

Example: Alternative Funds in Practice

A pension fund allocates a portion of its capital to an alternative fund focused on private equity and real estate. This fund invests in a mix of office buildings, infrastructure projects, and privately held companies. By doing so, the pension fund gains exposure to assets that don’t move in lockstep with public markets, helping to smooth returns and manage risk over the long term.

When Should You Consider Alternative Funds?

Alternative funds are especially relevant when:

  • You want to diversify beyond traditional asset classes

  • Seeking higher return potential or lower correlation with public markets

  • Managing institutional or high-net-worth portfolios with longer time horizons

  • Accessing specialized strategies or illiquid assets not available in standard funds

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Find the Right Strategy for You

Answer a few questions and get matched to a strategy based on your goals and risk profile.

Let’s explore what’s possible, together.

Whether you’re allocating capital or managing it — we’re here to help you move forward with clarity and confidence.

Let’s explore what’s possible, together.

Whether you’re allocating capital or managing it — we’re here to help you move forward with clarity and confidence.

Let’s explore what’s possible, together.

Whether you’re allocating capital or managing it — we’re here to help you move forward with clarity and confidence.

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Curated access to exceptional investment strategies, built on trust and long-term alignment.

© 2022–2025

Confluence Group

Investing in alternative strategies involves risk. Past performance is not indicative of future results. The value of investments can go down as well as up, and you may not get back the amount originally invested. These opportunities are intended for sophisticated or qualified investors who understand the risks involved. Please seek independent financial advice before making any investment decisions.

Confluence Group Brand Assets
Confluence Group Logo

Curated access to exceptional investment strategies, built on trust and long-term alignment.

© 2022–2025

Confluence Group

Investing in alternative strategies involves risk. Past performance is not indicative of future results. The value of investments can go down as well as up, and you may not get back the amount originally invested. These opportunities are intended for sophisticated or qualified investors who understand the risks involved. Please seek independent financial advice before making any investment decisions.

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Confluence Group Logo

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