What are alternative investment funds? Alternative investment funds (AIFs), managed by professional fund managers, pool money from numerous investors to collectively invest in a diversified portfolio of alternative assets. Alternative investment funds encompass a range of non-traditional assets beyond conventional stocks and bonds. For example, an alternative investment fund might include assets like private equity, real estate, and commodities. These funds, which offer investors access to less liquid markets, provide opportunities for portfolio diversification. Because alternative assets are ..read more

What is a crypto wallet? A cryptocurrency wallet is a tool that securely stores and safeguards an investor’s cryptocurrency holdings, allowing them to send, receive, and monitor their digital assets. There are physical and digital versions of wallets.  A crypto wallet is essential for executing transactions on a blockchain. When a user wants to send or receive crypto, the wallet generates and manages the necessary cryptographic keys: A public address for receiving funds A private key (known only to the wallet owner) for accessing assets and authorizing or executing transactions Without ..read more

What is private equity? Private equity (PE) refers to investments made in privately held companies by dedicated firms that fundraise and deploy capital specifically for this purpose. The companies that private equity firms invest into are typically not listed on public stock exchanges and thus not necessarily available to all types of investors. Private equity firms raise capital typically from institutional investors, like endowments, pension funds, and ultra-high-net-worth individuals. The investors who allocate their capital to private equity funds are typically referred to as limited partn ..read more

What is a 401(k)? A 401(k) is an employer-sponsored, tax-advantaged retirement savings plan. It allows employees to contribute a portion of their paychecks to the account. Contributions and earnings grow tax-deferred until withdrawal in retirement. Some employers choose to match a percentage of employees’ contributions, providing an additional incentive for participation. There are various types of 401(k) plans:  Traditional 401(k) plans include pre-tax contributions, so account holders pay taxes on their holdings at withdrawal Roth 401(k) plans include after-tax contributions, offering ..read more

What is an SDIRA? A self-directed individual retirement account (SDIRA) is a specialized type of IRA that gives account holders greater control over their investment choices with more diversified and unconventional investment strategies. Unlike traditional IRAs, SDIRAs allow investors to choose from a broader range of assets beyond stocks and bonds, including private market alternatives like private real estate, private equity, commodities, and more. With the flexibility of an SDIRA, individuals are given increased autonomy. However, this also requires more responsible individual management fo ..read more

What is an IRA? An individual retirement account (IRA) is a tax-advantaged investment account that’s strategically designed to help individuals save for retirement. They provide individuals with a way to build a nest egg for their futures while benefiting from potential tax advantages. There are different types of IRAs, including Traditional and Roth IRAs. In a Traditional IRA, contributions are tax-deductible. Your earnings grow tax-deferred until the time of withdrawal. This is appealing to many investors because, at the time of retirement, tax rates may be lower. Roth IRAs, on the other han ..read more

What is absolute vs. risk-adjusted performance? Absolute performance measures an investment’s overall return, regardless of the market conditions that may or may not have affected it. For example, a stock may gain 15% in a year, regardless of market fluctuations. On the contrary, risk-adjusted performance factors in the level of risk taken to achieve returns. The risk-adjusted performance considers volatility to help investors gauge how efficiently an investment generates returns relative to the associated risks. For example, a portfolio that achieves a 12% return with lower volatility compare ..read more

What is venture capital? Venture capital (VC) is a form of private equity financing that supports startups and with high growth potential. Venture capital funding is typically used to  fund product development and market expansion  for an overall growth in company valuation. In return for financial backing, venture capitalists secure an ownership stake in the companies in which they invest. In addition to financial support, venture capitalists also tend to offer these companies mentorship and networking opportunities to support their growth. After all, if the company succeeds—with an ..read more

What is correlation? In investing, correlation refers to the statistical relationship between the movements of two or more assets or financial instruments. Correlation measures the degree to which these assets move in relation to each other. This degree offers investors insights into their codependency. Correlation is measured by a correlation coefficient, which typically ranges from -1 to +1 (a negative to a positive correlation).  Assets with a perfect negative correlation (-1) move in opposite directions. Assets with a perfect positive correlation move in unison (+1). A correlation of ..read more

Kearny Jackson and Alto provide individual investors opportunities to access venture capital’s returns​ Venture capital has long been viewed as an alluring asset for business and finance leaders. Across lengthy time horizons, US venture capital has outperformed public markets. But it typically takes insider connections and deep industry expertise to know what sets venture investments up for success, and that’s a level of access individual investors seldom have.  Connections and expertise, arguably, are also what makes Kearny Jackson an exceptional presence in this space. In just f ..read more