An alternative fleece

If hedge funds are becoming too commonplace, Michael Goldston offers jaded high-net-worth investors an alternative investment whose distinctiveness will knock their socks off and keep their feet toasty at the same time. Through his seven-year-old High Meadows Alpacas LLC in Franklin, Tenn., Mr. Goldston buys, sells and raises alpacas, the llamalike animals that are native to the Andes and whose fleece is prized for its warmth and light weight. "Alpacas are a bit out of the mainstream, but investors are looking for opportunities to get back to the land, and the industry is thriving with upscale investors entering it," he said, adding that the value of alpacas tends to increase when stocks go down. Mr. Goldston, whose other business, Brentwood, Tenn.-based Cambridge Equity Advisors Inc., manages $225 million in assets, bought 15 alpacas in 2001 and now owns more than 300. In addition to operating a 150-acre Tennessee alpaca ranch, he has helped investors establish 20 farms and serves on the boards of several national organizations. While a female alpaca typically sells for around $25,000, one sold for $30,000 Feb. 29, a day the stock market plunged 315 points. Winning ribbons in alpaca shows is a way to increase the value of one's investment, and Mr. Goldston's alpacas have won 800 ribbons. High Meadows' website claims that its annual returns are in the 30%-50% range, including the agricultural tax breaks and fleece sale income. Perhaps anticipating a bull market in alpacas, Mr. Goldston said, he plans to buy 700 more alpacas over the next three years.