Besides the many fees and commissions, many alternative assets lock up your funds for up to 10 years. Until recently price disclosure of the asset was infrequent.

Owning Blackstone who offers alternative investments is one of few investments that significantly outperforms the S&P. Owning the alternative investment is not a good investment. Warren Buffet bet hedge funds they could not beat the S&P after commissions. They lost.

My biggest problem with alternative investments is each is so unique and therefore has no track record. I have modeled all kinds of problems in my career outside investing and have no clue how to evaluate these alternative investments.

Hedge funds are a real misnomer. They are anything but a hedge. They can go leveraged long or short. They can be long and short unrelated assets. Their performance varies enormously. On average they underperform the S&P.

Scalability is a serious problem for alternative investments. Incremental offerings are of a poorer quality.

A better way to obtain higher returns is to use the Stars buy and hold strategy. Last year Stars outperformed Blackstone by 33 percentage points.