Alternative Investments and Hedging Strategies

How we choose investments that move differently than equities and bonds.

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“I appreciate the sophistication and additional diversification of hedging strategies and alternative investments.”

Benefits of Diversifying Investments

A&I Financial Services LLC is a Colorado based investment advisory firm that has been registered as an investment adviser with the U.S. Securities and Exchange Commission (“SEC”). We help successful families & business owners effectively integrate alternative investment plans into their portfolios by offering a multi-manager solution. Investing with hedging strategies and alternative investments may provide you several benefits, including:

Smoother returns

Reduced volatility

Sleep easy at night

Alternative Investments

Secular Bull/Bear Market Alternatives

From a rapidly growing universe of alternative investments, our investment committee researches the historical correlations between investments. We want assets that have little relationship to equities or to each other. In today’s volatile investment environment, these are often hard to find.

Precious metals (like gold)
Natural resources (like oil)
Currencies
Commodities

Private equity
Real estate
Managed futures
Arbitrage

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Hedging and alternative strategies provide

Less bounciness

As shown in the picture, hedging and alternative investments strategy reduces the overall bounciness of a portfolio.

This strategy increases the chances of higher average long-term returns. Each investment has an average rate of return that is historically independent of equities and bonds. A smoother ride may help you sleep better at night.

Our Alternative Investments Process

Relationship analysis

We prefer publicly traded, marketable mutual funds or ETFs. This enables us to both purchase and sell investments, as necessary. Flexibility is a key element to alternative investments.

Performance analysis

After finding a series of investments, the A&I Wealth Management Investment Committee ranks them by their relative performance. Using a proprietary methodology, we choose the investments likely to deliver consistent positive performance and to maintain a low correlation with each other and with equities and bonds.

Allocation decisions

After determining the ideal investments for the asset allocations, and determining the technical trends are desirable, the investment committee layers the investments into a portfolio. We take great care to reduce the bounciness of your overall portfolio. Modern portfolio theory plays a key part in the asset allocation of alternative investments.

Ongoing monitoring

Our investment policy committee meets at least weekly to discuss investments. We meet with the managers of any investments at least annually. Then, we repeat this four-step process.

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Not every client invests with alternative investments or hedging strategies. Every client talks with their personal financial advisor about their unique situation, and the advisor invests appropriately.

We educate our clients about the specific risks associated with these strategies. These risks can include limited liquidity, the use of leverage, commodity price volatility, tax considerations and increased expenses.

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Investment Advice

Invest with an academically proven investment process built around your unique values, goals and relationships.

Asset Allocation and Portfolio Management

Balance the risk and reward between investments to achieve your real-life financial goals.

Stock and Mutual Fund Investments

We build high-quality, actively-managed equity portfolios using academically-proven techniques.

Bonds and Fixed Income Investments

Learn how our team makes recommendations for the portfolio we call “Foundation Income.”

Stock Option Planning

Learn about how we manage incentive stock options and nonqualified stock options to help you grow and protect your wealth, reduce your taxes, and achieve your personal goals.

Single Stock Diversification

Learn how we build an investment portfolio around your large equity position and help you diversify—not double-down (or worse) your risk.

Hedging strategies and alternative investments

Hedging Strategies and Alternatives

Learn how we carefully select some alternative investments to provide income and growth for some clients.

Investment Performance Analysis

Learn how we perform investment performance analysis and provide our clients access to this information, on demand, with great technology.

IRAs: Roth, Rollover, Inherited and More

Learn how we solve the complex problem of providing retirement income and reducing income taxes.

401k Advice for Individuals and Business Owners

401k Advice for Individuals and Businesses

How we provide retirement plan advice for our clients 401k accounts, and for employers who want to provide advice to their employees.

Annuities of All Kinds

An annuity may provide you a safe and prudent retirement income. We have independent, expert annuity agents with a huge array of providers to choose from.

Values Based Investments

Learn how we enable our diverse clients to invest with their values.

Talk with an Expert

Our wealth management approach may be different from experiences you have had with other advisors.

Attend an upcoming event

We offer a broad array of events that broaden our knowledge and experiences.

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Alternative Investments Research

We have long been proponents of managed futures strategies…READ MORE

Alternative Investment Strategy

Denver | Englewood | Greenwood Village | Littleton | Centennial

Our financial Advisors can meet with you at our Lone Tree office or any location in the greater Denver area including Greenwood Village, Littleton, Centennial or Englewood.

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