An entrepreneur, Hilt Tatum IV earned a postgraduate degree from the University of Oxford’s Said Business School. Hilt Tatum IV is the president of and a partner in iPoint Capital Partners, a firm focused on providing services ranging from venture capital to alternative investment portfolios.
Like the weather, the market can fluctuate without warning, adding large degrees of risk and uncertainty to most traditional investments. Alternative investments attempt to mitigate risk in the traditional market. Markets have a tendency to fluctuate without warning, causing investors to panic and sell off stock, which only causes the market to decline even further.
However, alternative investments such as private equity do not necessarily correlate to market fluctuations. Furthermore, many alternative investments come with long lock-up periods during which investors cannot jettison them. This forces investors to ride out storms.
Certain tax benefits derive from some long-term alternative investments. One of the most attractive is that long-term capital gains taxes are lower than taxes earned on short-term investments, again speaking to the advantage of waiting rather than turning over several short-term opportunities in rapid succession and incurring larger transaction costs.
Hilt Tatum is CEO of Oxford Consulting Group - International business consulting