Learning Center

Private / Alternative Investing

At Davis Capital Group, we believe that successful investment strategies involve proper asset class selection, quality investments and forward-thinking. Analyzing some of the most successful institutional portfolios, it quickly becomes apparent the need for private/alternative asset classes to enhance portfolio returns while minimizing portfolio volatility. A great example is the Harvard University Endownment, which has consistently outperformed public equity and bond markets with less volatility. As of 2010, Harvard allocated more than 2x to real assets than to domestic equity and more than 50% of its portfolio to private/alternative investment strategies. Which beg's the question: How does your portfolio compare, both in composition and returns?

Why Real Assets?

Real assets are tangible. Their value is not linked to financial manipulation, paper currency or other falsehoods. Their value lies in their utility, attractiveness and scarcity. That's why real assets thrive during times of uncertainty and inflation. Today's world is frought with factors driving real asset pricing:  Crippling sovereign debt loads, currency devaluation issues, significant increases in the money supply, geopolitical unrest, population growth, and rapid industrialization. Each of these factors in isolation can drive real asset pricing; in unison, they will provide the force for a long-term bull market in real assets.