Alternative investments can be viewed as exposures or strategies that provide different and unique return streams from those offered by traditional equity and fixed-income investments. These different return streams are generally the result of unique characteristics relative to traditional equities and bonds, such as lower correlations, unique volatility patterns or unique up/down capture ratios. Alternative investments are broken into three categories: Alternative Markets, Alternative Investment Approaches and Absolute Return Strategies. An overview of “Alternatives” as an asset class and their power to reduce risk and enhance returns is provided. The key considerations associated with implementing “alternatives” in client portfolios is explored.