Shane Kinahan, an investment manager and principal based in Greenwich, Connecticut, urges investors to rethink common myths about alternative investments and class action claims.

GREENWICH, CT / ACCESS Newswire / January 22, 2026 / Shane Kinahan, Co Founding Managing Partner at Lake Avenue Capital, is calling attention to five myths that he believes quietly push investors into poor decisions, missed opportunities, and unnecessary risk.

"Most mistakes I see are not about math," Kinahan says. "They start with a story someone accepted as truth and never tested."

Below, he breaks down five common myths, why they sound convincing, and what investors can do instead.

Myth 1: Alternative investments are only for ultra wealthy investors

Why people believe it:
The word "alternative" sounds exclusive. Many investors associate it with hedge funds, private deals, and products that only show up in family office conversations.

The reality:
Access rules and minimums matter, but the landscape has changed. There are more structured, regulated vehicles today that give qualified investors measured exposure to alternatives without needing a nine figure balance sheet. The real dividing line is not wealth. It is understanding and suitability.

"Being locked out is not the main risk," Kinahan explains. "The real risk is walking in without a clear picture of how the investment behaves."

Practical tip:
Before considering any alternative investment, write down in one paragraph how it makes money, what could go wrong, and how long your capital may be tied up. If you cannot do that, you are not ready to commit funds.

Myth 2: Class action settlements mean big personal payouts

Why people believe it:
Headlines often highlight total settlement amounts in the millions or billions. It is easy to assume that every individual cheque is life changing.

The reality:
In many class action cases, individual recoveries are modest, often in the tens or hundreds of dollars after legal fees and distribution. The strategic value is in aggregation and in how specialized firms manage, value, and trade these claims at scale, not in a single consumer filing a claim and expecting a windfall.

"People see a large headline number and mentally divide it by a small group," Kinahan notes. "In practice, the pool of claimants is large and the net per person is usually much smaller."

Practical tip:
If you receive a notice for a class action, treat it as a small recovery opportunity, not a financial plan. File your claim, keep your expectations realistic, and focus your real investing energy on longer term strategies you can control.

Myth 3: If a strategy works once, you should scale it as fast as possible

Why people believe it:
In investing, one early success can be powerful. A fund, a claim portfolio, or a niche strategy that hits its targets can create pressure to double or triple exposure quickly.

The reality:
What worked once may have depended on timing, specific legal or market conditions, or unique pricing. Scaling too fast can magnify hidden weaknesses. In areas like class action claims and alternative assets, liquidity, legal timelines, and counterparty risk do not always expand smoothly.

"Institutional training taught me to ask what happens at twice the size, not just what happened the first time," Kinahan says. "Sometimes the answer is that the edge disappears."

Practical tip:
If a strategy performs well, increase exposure in stages. After each step up, review whether pricing, risk, and operational capacity still look sound. Build a habit of proving scalability instead of assuming it.

Myth 4: More complex structures mean more sophisticated returns

Why people believe it:
Complex language and layered structures can sound impressive. Many investors feel that if something is hard to explain, it must reflect a higher level of expertise.

The reality:
Complexity often hides risk rather than improving it. In claims portfolios and alternative structures, extra layers can introduce more counterparties, more assumptions, and more ways for the economics to shift away from the investor.

"Any investment I cannot explain in clear terms makes me cautious, not excited," Kinahan observes. "Complexity is a cost that has to earn its place."

Practical tip:
Refuse to invest in any structure you cannot explain to a non expert in simple language. If you need multiple pages of jargon to make it sound appealing, treat that as a warning sign and walk away or seek independent advice.

Myth 5: Once you hire professionals, you can stop paying close attention

Why people believe it:
Specialized areas like alternative investments and class action claims can feel intimidating. Handing everything to a manager and disengaging can seem efficient and safe.

The reality:
Professional management helps, but it does not replace informed oversight. Investors who never review reports, never ask questions, and never revisit their risk tolerance can drift into strategies that no longer match their situation.

"Delegation is not the same as abdication," Kinahan explains. "You are still responsible for understanding the broad picture of where your money sits."

Practical tip:
Set a recurring calendar reminder, at least quarterly, to review your alternative and claims related holdings. In that review, ask three questions: Has my situation changed, has the strategy changed, and do the risks still feel acceptable?

If you only remember one thing

Most costly mistakes in these areas do not come from a single bad product. They start with untested stories. The investors who tend to do better over time are the ones who question myths, insist on clear explanations, and move at a pace that matches their understanding, not the marketing cycle.

Readers are encouraged to share this five myth list with family, colleagues, and clients who may be considering alternative investments or class action opportunities. Pick one practical tip, such as writing a one paragraph explanation of a current investment or scheduling a quarterly review, and put it into action today.

About Shane Kinahan

Shane Kinahan is an investment manager and principal based in Greenwich, Connecticut. He is Co Founding, Managing Partner at Lake Avenue Capital, LLC, where he focuses on alternative investments and class action related strategies. Previously, he served as a Vice President at Goldman Sachs in New York. He is also Founder and Managing Partner of JMR Partners, LLC and an Investor and Board Advisor at Drawbridge Partners, LLC. He holds a BA in Finance from Bentley University.

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SOURCE: Shane Kinahan



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