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1. Counterparty Risk: Alternative investments usually involve speculation on derivatives such as options, futures, swaps, etc. These investments often require a counterparty as the opposite of the speculation and there can be a risk of default by the opposing counterparty.

2. Liquidity Risk: Alternative investments involve less liquidity than traditional investments, and therefore access to cash may take more time or a higher magnitude of transaction costs.

3. High Risk: Alternative investments usually involve higher risk than traditional equities and fixed income options. Investors need to be aware of the increased risks and should be prepared and able to lose the entire value of their investment.

4. Complex Strategies: Alternative strategies can sometimes be complex and difficult to evaluate, making it challenging to understand the risks and potential rewards of the investments.

5. Expertise Required: Alternative investments may require a great deal of expertise and knowledge. Understanding these investments requires in-depth knowledge and experience, which may involve using specialized strategies and techniques.