Seeing what others don’t see and connecting the dots before they become obvious is perhaps our greatest skillset as an organization. That’s how we spot opportunities.
Alternative Investment Pathways
Our alternative investment pathway investment model is a function of continually thinking “outside the box” and approaching the market’s challenges as opportunities. It is the combination of our vision, perseverance, and experience of prospering through the 2008 financial crisis that allows us to deliver risk-adjusted alpha returns today. In focusing exclusively on alternative asset classes, we apply the adage that what is typical or comfortable is rarely profitable. We’re not into following the herd; we’re into creating our own investment pathways.
Real Estate Fundamentals
In selecting specific investment pathways for our emerging real estate market portfolio, we focus on market fundamentals. The main characteristics of emerging markets are the high growth potential of the middle-class and the need for affordable housing. Mexico is no exception to that distinctive set of parameters, and the market fundamentals speak for themselves.
Urbanization
32% of the population living
in urban centers
Rising Consumer Spending
65% of the GDP is composed of
consumer expenditure
Expanding Middle-Class
75% of the population in
the middle-class by 2030
Young Population
48% of the population to be
under 30 years old by 2025
Index Fund Tendencies
The quintessential element to realizing gains from index funds is to understand what drives global macroeconomics tendencies. It is those tendencies that determine the fluctuations of the various related index fund ETFs. When the market tendency is bullish, the upward intraday variations of traditional ETFs like VOO provide the basis for gains. When the market is bearish, the downward tendency expressed as upward variations in contrarian ETFs like SPXS provides the basis for gains (despite the market sustaining losses). The source for realizing gains is the intraday fluctuations, irrespective of the market moving up or down.
Research-Driven Value Investing
We’ve learned during the course of our twenty-plus years of asset management that opportunities are often brilliantly disguised as barriers. We’ve also learned that opportunity favors the bold. What allows us to identify opportunities better than most private equity firms is our analytics-based approach to identifying uncommon investment pathways like emerging market real estate and index fund ETFs. Research-driven value investing is just that, research with an eye towards identifying value in alternative investment asset classes. That’s our specialization.