Alternative Investments

"Alternative investments is a label for a disparate group of investments that are distinguished from long-only, publicly traded investments in stocks, bonds, and cash (often referred to as traditional investments). The terms “traditional” and “alternative” should not imply that alternatives are necessarily uncommon or that they are relatively recent additions to the investment universe. Alternative investments include such assets as real estate and commodities, which are arguably two of the oldest types of investments.

Alternative investments also include non-traditional approaches to investing within special vehicles, such as private equity funds and hedge funds. These funds may give the manager flexibility to use derivatives and leverage, to make investments in illiquid assets, and to take short positions. The assets in which these vehicles invest can include traditional assets (stocks, bonds, and cash) as well as less traditional assets".

Source: https://www.cfainstitute.org/en/membership/professional-development/refresher-readings/introduction-alternative-investments#:~:text=Alternative%20investments%20are%20supplemental%20strategies,%2C%20real%20estate%2C%20and%20infrastructure.