WEALTHTRACK Alternative Investments: What They Do and Don’t Do for Your Retirement Plan
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Nov 7, 2025 Jane Buchan, an expert in alternative investments and CEO of Martlett Asset Management, delves into the world of non-traditional assets. She highlights the distinctions between liquid and illiquid alternatives, explaining their role in retirement plans. Jane discusses the rise of private credit, the challenges for regulations in a global market, and how hedge funds differ from private equity. She emphasizes the importance of diversification in investment portfolios, providing insightful strategies for average investors looking to explore alternative options.
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Incentives Align Manager And Investor Interests
- Alternative managers often have stronger alignment via incentive compensation, which can reduce incentives to 'dump' bad holdings.
- Buchan notes managers make more money when returns are good, aligning interests with investors.
Old Rules Need Modern Updating
- Current public investment rules were written nearly a century ago and don't reflect today's knowledge economy and globalization.
- Buchan argues regulations and structures should be updated to prudently open alternatives to individual investors.
Private Ownership Reduces Market Noise
- Private companies avoid daily market noise, allowing management to focus on long-term build rather than short-term price swings.
- But private holdings are illiquid, and investors must wait for a sale or accept price discounts to exit.