What are alternative asset classes? Beyond the three primary asset classes--stocks, bonds, and cash-- many other types of investments can be used to diversify investment portfolios. The term "alternative assets" is highly flexible. It may include specific physical assets, such as natural resources or real estate, or methods of investing, such as hedge funds or private equity. In some cases, even geographic regions, such as emerging global markets, are considered alternative assets. Alternative assets often are highly dependent on novel investing strategies or individual skill in selecting specific investments. For example, hedge funds (see below) exist to pursue investing strategies that oft