Alternative Investing: Diversifying Beyond Conventional Assets
In the evolving world of alternative investments, Wyatt Cavalier has built a career exploring untapped opportunities that lie far beyond conventional assets like startups and real estate. We sat down with Wyatt to discuss his unconventional approach, which spans investments in tequila barrels, rare earth metals, and other niche markets. His insights offer valuable lessons on diversifying portfolios, navigating the alternative investment market, and uncovering opportunities often overlooked by traditional investors.
FOUNDED
2020
LOCATION
Europe, United States and Mexico
FOCUS AREAS
Alternative assets
INVESTOR COMMUNITY
Altea: The private community for serious alternative investors.
The Power of Adaptability in Private Markets
Wyatt’s career path is anything but linear. After university, he joined the U.S. Army and later transitioned into banking. An MBA eventually led him to launch a Fair Trade coffee company in the UK. However, the COVID-19 pandemic forced a dramatic shift in his career. This pivotal moment reignited Wyatt’s interest in investments. While running a hedge fund during business school, he had developed a curiosity for alternative assets and overlooked markets like art, sports cards, and whiskey.
“If I wanted to get involved in this industry, I would go where no one else knew anything either,” Wyatt explains, “ building my own experience and making my way into the conversation.”. This mindset led him to immerse himself in niche opportunities, sharing his findings through a newsletter that grew into a thriving community.
Redefining Alternative Investments
Wyatt’s approach to alternative investments challenges conventional definitions. “When people think of alternatives, they typically imagine startups or real estate, often overlooking ‘alternative alternatives’.”. These include unique assets that often fly under the radar of institutional investors. For example:
- Collectibles
- Tequila barrels
- Art investments
- Film finance
The common thread among these opportunities is their limited supply and high potential returns. Wyatt’s work emphasizes that by exploring unconventional investments, individuals can uncover significant rewards while diversifying their portfolios.
The Power of Relationships in Due Diligence
Two of the biggest barriers to alternative investments are access and due diligence. Without a direct connection to experts in niche markets—such as art, rare metals, or classic cars—investors may feel hesitant to dive in.
From cultivating ties with the heads of tequila distilleries to collaborating with insiders in the art market, Altea taps into its extensive network to uncover opportunities and conduct thorough due diligence. “Our community is a huge asset. Whenever we’re exploring something new, there’s almost always someone in our network with deep expertise,” Wyatt adds.
For investors, this underscores a critical lesson: collaboration and network-building are essential when exploring unfamiliar markets. Relationships not only open doors but also ensure more rigorous due diligence, reducing the likelihood of costly mistakes.
Balancing Risks and Returns
One of the greatest appeals of “alternative alternatives” is their independence from broader market trends. Unlike traditional investments, these assets often move in ways that are uncorrelated—or even inversely correlated—to traditional markets.
Wyatt explains, “Art, for instance, is often inversely correlated to equities. When markets are down, people turn to art as a store of wealth. Similarly, tequila is a consumer staple, largely unaffected by broader market trends.”
While more conventional alternatives, such as venture capital or private equity, can be influenced by market shifts, niche investments offer a degree of insulation. This makes them particularly attractive for investors seeking diversification.
However, these opportunities come with their own unique risks. From political instability to logistical hurdles, the potential for extraordinary returns is counterbalanced by the challenges inherent in niche markets. Careful consideration and robust due diligence are essential to navigating this space effectively.
Blockchain and the Future of Alternative Investments
Wyatt sees blockchain technology as a game-changer for niche investments. Persistent challenges—like fraud and inefficiencies in markets such as art, wine, and real estate—can be addressed through blockchain solutions, particularly asset tokenization. These innovations offer enhanced transparency, fraud prevention, and more efficient processes.
While blockchain adoption in niche markets is still in its early stages, Wyatt remains optimistic about its transformative potential. “It’s a tiny layer that most users won’t even notice,” he explains, “but it will significantly impact transaction fees, fraud prevention, and overall returns.”
For investors, blockchain represents a unique opportunity to participate in an emerging space set for substantial growth—one that promises to reshape how alternative investments are managed and secured.
Advice for Aspiring Investors
For those looking to explore alternative investments, Wyatt offers practical advice:
- Start Small: Platforms like fractional investment sites are a great entry point.
- Leverage Communities: Joining networks like Altea can provide access to deals and expertise.
- Follow Your Passion: Investing in areas you’re genuinely interested in can make the learning curve more enjoyable.
- Prioritize Due Diligence: Building relationships and thoroughly researching opportunities are essential steps.
“It’s not as scary as it seems,” Wyatt assures. “If you know how to analyze a company, you can apply the same principles to a mango farm in Thailand or a film finance deal.”
Conclusion
Wyatt Cavalier’s journey into alternative alternatives highlights the power of curiosity, adaptability, and relationships in uncovering unique investment opportunities. For those willing to venture beyond the traditional, his insights offer a roadmap for navigating niche markets, balancing risks, and reaping uncorrelated rewards.
By focusing on knowledge, due diligence, and collaboration, investors can unlock unexpected opportunities in the most unconventional places—transforming the way we think about diversification and wealth-building.
