The Outlook on Alternative Investments – Post 3

At the kick-off session of the inaugural EisnerAmper Miami Private Wealth Forum, Elana Margulies-Snyderman, a senior manager at EisnerAmper, moderated a panel discussion focusing on the outlook for alternative investments.  The esteemed panel included Shawn Harrington, managing director of CV Advisors LLC; Luis D’Amato, partner of Ashton Capital Management and Neil Sosler, partner of Singer Xenos Schechter Sosler Wealth Management.  
One theme prevalent throughout the panel discussion was that the uncertainty of the economic and political times that we are living in is having a greater impact on investment decisions.  Harrington mentioned that his clients are concerned with transparency and even though some of the best performing funds are closed, quant funds are not always appealing for his clients due to the lack of such transparency.  Both D’Amato and Sosler said that they have seen an uptick in catastrophe bonds.   Although all three panelists have differing views on investment strategies and the future of alternative investments, one thing all three can agree on is that the typical 2/20 fee structure is no longer the norm.  Harrington believes that the “fee structures will continue to move south.” Both Sosler and D’Amato agreed that fee compression is here and will continue to be here.   Another thing we know for certain is that 2018 will bring many changes to the way managers will be viewing alternative investments.