Alternatives (alts)

Alternatives (“alts”) — the industry catch-all for everything outside public stocks, bonds, and cash: private equity, hedge funds, real assets, private credit, collectibles. US family offices run ~54% alternatives; the average university endowment ~56%. The three adjectives to attach whenever you hear the word: illiquid, access-gated, fee-heavy — the 5.4 audit shows the average institution’s alts failed to beat a two-fund portfolio after fees.

First used in: 5.1 · How the wealthy actually allocate