Expect the Unexpected

This post is a helpful reminder that I need to consistently prioritize setting my and client expectations as an essential component of successful investing, especially for Alts. Like most investments and life itself, Alts will rarely play out as originally intended. They may be better, and they may be worse. Still, the management of each strategy involves continuous adaptation to unforeseen circumstances, which is something we must expect and accept when investing. Diversifying across a mix of strategies (even ones that may be inherently diversified) and sizing investments appropriately can help smooth out the total portfolio impact and our experience. And all of that can better align outcomes with our (hopefully realistic) expectations. There WILL be unpredictable investment journeys, but what we must avoid at all costs are potentially catastrophic outcomes related to concentration risk, thus allowing us to fight another day, try again, fail again, and fail better.

Links mentioned in this episode: https://altblend.com https://thebahnsengroup.com