Our Observations and Our Approach

30 years of investment perspective

There have been three significant trends in the last 30 years that we have identified. To take advantage of these trends, we created the following strategies, investment funds and firms.

  • Managed the largest trading desk in U.S. for secondary market limited partnerships.
  • Identified that real estate would move from private to public ownership in the form of REITS in mid-1990’s. We created hedged funds, U.S., and global real estate mutual funds to take advantage of this trend.
  • After the financial crisis in 2008, we strongly believed that there would be a need for investors to diversify sources of equity and fixed income risk. We created sub advised liquid alternative mutual funds with private hedge fund managers and strategies to manage investment portfolios.
  1. Observation: In the 1980’s and early 1990’s, there were thousands of limited partnerships syndicated for investors with no real means of liquidity.
    Approach    :
    1986 – 1995 We managed and ran the largest secondary market limited partnership trading desk in the United States to take advantage of the extreme discounts available to investors in this illiquid market.
  2. Observation: In the early 1990s, there were approximately $5 billion of equity securities traded in the public REIT market. We believed that real estate would move from private to public ownership through the REIT structure due to the lower cost of capital, market efficiencies, and access to capital in the public markets.
    Approach    :
    1994 – 2008 We created a series of hedge funds and public mutual funds both in the US and global markets to take advantage of this securitization trend. The public REIT market eventually grew to $2 trillion through 200 publicly traded REITs.
  3. Observation: After the 2008 financial crisis, investors would be looking to diversify their equity and fixed income portfolios through private hedge funds strategies to help mitigate risk.
    Approach    :
    2010 – 2022 We launched a series of liquid alternative mutual funds including one of the of the first multi-manager hedged equity public mutual funds. The Firm was formed to bring hedged fund strategies to retail investors in a mutual fund format.

What’s next? The observation and approach outlined below will guide my efforts over the coming years.

  • Current Observation: Given the historic low return expectations for fixed income over the next three to five years and the corresponding low return implications to a 60/40 portfolio, there will be significant demand for alternatives to fixed income to meet investors’ need for retirement income and equity diversification.
  • Approach:
    2022 – onward: Identify and partner with asset management firms with investment solutions designed to help financial advisors and their clients.