Alternative investments (those that exhibit risk and return properties not easily attainable from traditional asset classes) constitute an investment option that no modern college or university investment strategist can ignore. Colleges and universities with larger allocations to alternatives outperformed institutions with smaller allocations in both the bull market of the late 1990s and in the bear market of the early 2000s. Given this widespread acceptance and generally successful performance of nontraditional investments, should all colleges and universities invest in alternatives? The author answers this question by reviewing the advantages and disadvantages of alternative investments, and concludes that, despite their successful record, they are not the right fit for every institution. Only colleges and universities willing to make substantial, diversified, policy-driven commitments implemented by experienced, full-time professionals are advised to consider alternative investments in their plans. (Contains 1 table.)