The just-launched firm Circle Squared Alternative Investments is Jeff Sica’s solution to simplifying alternative market investing.
“The goal is to educate advisors and investors on alternative investments, not only on what they are but how to use them in a portfolio,” Sica said in an interview with ThinkAdvisor.
Sica and the Circle Squared team will serve as coaches and mentors to advisors to help them better understand and communicate to their clients the role and advantages of alternative investments in a portfolio. A lot of the education will be done through a proprietary Web community, which according to the press release, will be launched in the coming weeks.
Circle Squared will also make a range of alternative investments more accessible, Sica said, whereas before they were available only to institutions and ultra-high net worth investors.
“[I]nvestors are growing increasingly dissatisfied with the stagnant performance and unacceptable volatility they’re getting from traditional investments like stocks and bonds, and you have a situation in which advisors have fewer and fewer ways to provide value to their clients,” Sica said in a statement.
On Circle Squared’s platform, various alternative investments will be available, such as real estate, private equity, private credit, natural resources, private placement offerings, entertainment and media. Some of the investment offerings will be co-managed with outside investment teams that Circle Squared has vetted, while others will be managed by the Circle Squared portfolio team.
Sica hopes that through Circle Squared they can show investors how alternative investment strategies can be useful in protecting their portfolio in any type of market.
“It’s really looking at alternatives as not just something to add to a portfolio but to be the core of the portfolio,” said Sica. Adding that, “You invest in alternatives to save your portfolio, to reduce your correlation … so that when the market does reverse you’re able to withstand anything on the horizon.”
Sica, founder of Sica Wealth Management, will act as Circle Squared’s founder and CIO, and he plans to expand Circle Squared’s management team so he can still stay connected to the critical aspects of Sica Wealth Management.
According to Circle Squared, more information on new alternative investment offerings, the launch of their online RIA advisor community and other strategic partnerships can be expected over the coming months.
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