Sep 21, 2021
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How Alternative Wealth Partners is innovating investing—and alternative investing—for women.

Women represent just 14% of financial fund managers in the United States—a statistic that is both woefully telling about equity and inclusion in the financial industry and deeply incongruous with the financial ability that women bring to the table.

Here’s what we mean: According to a study last year conducted by Goldman Sachs, female-managed US funds outperformed all-male rivals. According to the study, which analyzed 496 large-cap US equity funds, all-women and mixed-gender US funds performed three times better than firms run by men. Of the 496 analyzed in the research, only 14 firms were run by all-women teams—and 380 were entirely male run.

The fact is: Not only are women underrepresented in the financial field, but their value to investing and fund management is deeply under-appreciated.

Women tend to be more detail-oriented and risk-averse. They bring to the table balanced motivations when considering an investment and make logical, cautious, and decisive investment choices that tend to put more money on the table and earn higher returns.

Moreover, not only do women tend to bear the responsibility of financial literacy at home, but they’re often responsible for their family’s finances—exerting control and judiciousness over their family’s assets.

As a female-founded and women-run investment fund, it’s our goal to strive for equity and inclusion in our industry. In a wide open alternative investments field, the door is open for women to make a significant impact in the financial industry.

What is alternative investing?

Alternative Wealth Partners was founded because we saw—and continue to see—a voracious demand for investors to protect their portfolios from downturns in the stock market.

Alternative investments describe assets out of the traditional market for stocks, fixed income or cash—like private equity, commodities, tangible assets, energy, and real-estate. With high returns and non-correlated profits, alternative assets can be used to diversify a portfolio, preserve wealth off-Wall Street, and access aggressive opportunities for growth without the insecurity of market losses.

More, because alternative investments typically have a low correlation with standard assets—meaning their value tends to counter the stock and bond markets—alternatives are an effective hedge against inflation and a pathway toward high-returns from inflationary spending.

At Alternative Wealth Partners, we source, vet and invest in ventures across every industry—including energy, manufacturing, distribution and innovative new markets, like pharmaceutical cannabis.

Our fund gives investors access to profits from high-return and seasonal commodities—like oil and natural gas—and allows investors to seek profits from a variety of private placements. Where an accredited investor would normally need to meet the base investment of $50,000 to acquire private equity in a venture—and expose themselves to the risk of a new company—our fund allows investors to seek profits from a variety of private placements, all with a single investment.

Why does female representation in alternative investing matter?

Like the economic consequences of race inequity in business, we all make less money when financial teams are less gender diverse—and when women are missing from the table.

The truth is, a lot of female investors choose not to invest because of the financial managers they’re made to interact with—aggressive investor relations people and firms without adequate representation. When women can’t find financial advisors, fund managers, and tax professionals who look and think like them, we’re all less successful.

In alternatives, where I hope Alternative Wealth Partners makes significant strides, I’m confident that women have the opportunity to make the biggest impact.

At a time when so much of the investment industry is predicated on a gamble and game, alternatives are driven by smart sourcing capabilities, judicious risk assessment, and long-term thinking that can spot the right private placements and innovative ventures to bring to the fund—all qualities at which female investors are proven to excel.

In the end, generational wealth isn’t built on 401(k)s, traditional portfolios, and public equity. It’s created on alternatives—commodities like oil and gas and equity in private companies. Female investors have the power and investing acumen to build that foundation for themselves and others—and to spearhead alternative wealth as the new frontier for investing.