1.What role can alternatives play in a Gideon Capital portfolio?
Gideon Capital uses alternatives selectively to pursue return sources, income, or risk exposures that differ from public stocks and bonds. Private equity, private credit, hedge funds, real assets, and infrastructure each serve different purposes. An allocation begins with a portfolio objective and liquidity budget rather than a fixed target for the category.
2.How does Gideon Capital underwrite an alternative manager?
Due diligence covers the investment team, repeatability of the process, portfolio exposures, realized and unrealized track record, loss experience, valuation, service providers, fees, liquidity terms, capacity, and operational controls. Gideon Capital also tests how the strategy changes the client's total portfolio; a strong manager may still be a poor fit if it duplicates existing risks.
3.How are alternative investments evaluated after taxes and fees?
Gideon Capital compares expected net, after-tax returns with a liquid public-market alternative. The review accounts for management fees, incentive allocations, fund expenses, the timing and character of distributions, and the investor's account structure. PPLI or another tax-aware ownership structure may be evaluated when suitable, but its costs and constraints are included in the comparison.
4.What is different about selecting an Insurance Dedicated Fund?
An Insurance Dedicated Fund is available through eligible insurance and annuity separate accounts rather than by direct subscription. Gideon Capital reviews the strategy with the same investment and operational standards applied to other private funds, then considers policy-level diversification, liquidity, and investor-control constraints. Availability through a carrier does not by itself establish suitability.
5.How does Gideon Capital size an alternatives allocation?
Position size depends on the strategy's role, drawdown risk, capital-call schedule, redemption terms, concentration, and the investor's future cash needs. Gideon Capital models commitments and distributions across the full portfolio so a client is not forced to sell liquid assets at an unfavorable time. Fund minimums are a constraint, not an allocation recommendation.
6.Which alternative strategies does Gideon Capital consider?
The opportunity set may include long/short equity, macro and diversifying hedge funds, private credit, buyout and growth equity, venture capital, real estate, infrastructure, and other real assets. Gideon Capital selects strategies based on the client's objectives and the quality of available managers rather than attempting to fill every category.
7.How does Gideon Capital manage illiquidity?
Illiquidity is managed at the household or entity level, not fund by fund. Gideon Capital forecasts spending, taxes, capital calls, loan obligations, and likely distributions under base and stressed scenarios. Lockups, gates, notice periods, and extension options are treated as real constraints, and enough liquid capital is retained for foreseeable needs.
8.Do alternatives always improve diversification?
No. Some alternatives hold equity, credit, leverage, or liquidity risks that become more correlated during market stress. Reported private-asset values can also appear smoother because they are appraised less frequently. Gideon Capital looks through labels to underlying exposures and uses scenario analysis alongside historical correlations before assigning a diversification benefit.