Alternative Investments in Portfolios at Durbin Bennett
As mentioned above, these types of investments are not readily available to everyone like publicly traded stocks and bonds. Typically, alternatives are accessed only through institutional investors or if you meet the specified ultra or high net worth requirements. Because of our strong rapport with our network of alternative managers, Durbin Bennett is uniquely able to provide our clients with access and insight into some of these unique investments.
No doubt stocks and bonds play an important role in our client portfolios. However, where appropriate, we go one step further and also incorporate alternative investments to provide uncorrelated returns to the stock market (additional diversification) and steadier return streams (reduced volatility) for our clients.
We refer to our investment philosophy as a “Core-Satellite” approach. The portfolio’s core holds highly diversified stocks and high-quality bonds. The portfolio’s satellites are split between true alternatives (assets uncorrelated with the stock market) and real assets (assets with tangible value).