International Foundation of Employee Benefit Plans Investments Institute

Ed Patchett presented a session on Alternative Investments at a meeting held in Tucson, AZ on April 19. In the session he reviewed the investment characteristics, structure and key risks of the three major types of alternative investments; private equity, hedge funds and managed futures / commodities. Among other things he pointed out that alternative investments are becoming more common investments for ERISA pension funds and can provide meaningful diversification to traditional asset classes. Ed also indicated this asset class requires a heightened level of investment and legal due-diligence.