Successful investors know that diversification is an essential strategy to help improve returns and reduce the potential risk of investing in only a few asset classes. A well-diversified portfolio is much more than just a good selection of traditional investments. Diversification means including a mix of funds from different sectors, industries and alternative asset classes. Well-positioned alternative investments can help you meet your financial goals by reducing overall portfolio risk.
AMG National Trust Bank works with its affiliate Asset Management Group Investment Corp. (AMGIC) to help qualified and accredited clients diversify their portfolios beyond traditional mutual fund, stock and bond holdings. AMGIC offerings include access to the following alternative and illiquid investments:
- Real Estate. AMGIC provides opportunities for direct investments in real property, including multi-family, retail, and office, industrial and undeveloped land. Each investment entity typically acquires two to five properties with an emphasis on diversification by property type and geographic location. As general partner or manager, AMGIC is responsible for all phases of acquisition, ownership, management and disposition of the underlying real-property investments.
- Long/ Short Equity Hedge Funds. Hedge funds are private investment partnerships that use a variety of investment strategies across a number of different asset classes. The success of a hedge fund is determined by its ability to execute well-researched trading decisions yet protect against downside risk using hedging strategies. These strategies include options, derivatives or short-selling. AMGIC uses a fund-of-funds structure to further diversify this alternative offering.
- Venture Capital and Private Equity Funds. AMGIC has developed a sophisticated program to identify and select venture capital and private equity investments. Venture capital funds-of-funds are constructed to invest across the complete venture-financing spectrum (e.g., seed, early stage, late-stage, buyout and mezzanine). Private equity fund-of-funds allow AMGIC to create opportunities to take advantage of favorable economic and business conditions in many environments, such as a fund invested in businesses in Central and Eastern Europe.
- Energy. The most common oil and gas investment entities have focused on the acquisition of working interests in oil and gas wells, and the development of new wells. AMGIC also looks to diversify energy investments by incorporating alternative or “green” energy.
- Equipment Leasing. The purchase and subsequent leasing of equipment to credit-worthy lessees can generate an asset-backed income stream for investors over the lease period.