Blog posts

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25 Apr: Protection in a Financial Meltdown

When a public company suffers a financial meltdown, what are the ripple effects?

What are the different levels of exposure among the varying levels of investors and holders of financial instruments? To predict the impact of a future financial meltdown, one only has to look back at some recent financial disasters to have an idea of how the next disaster will play out.

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17 Apr: Are Private Placements Right for You?

Investing in private placements is not for everyone. They may not be right for you. Let’s see if you relate more closely with James or Jimmy.

James and Jimmy are brothers, but the two couldn’t be more different when it comes to investing and even in their personal finances. Does that sound like you and your siblings?

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10 Apr: Lack of Competition Creates Lucrative Opportunities

When was the last time you saw two competing mobile home parks across the street from one another or even on the same city block?

The answer is likely never, because like you, we have never seen this phenomenon. We’re not saying it doesn’t exist. We’re just saying that in all our years of investing in this space, we’ve never seen it.

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12 Mar: Benefits of Private Investing Part 3

Conventional investing is a pretty dull game. You purchase your index funds or shares of stock on your own and forget about them or in the case with many investors, your financial adviser purchases stocks on your behalf and often times they’re already sold before you even hear about them.

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06 Mar: Benefits of Private Investing Part 2

While true diversification is a critical component for a successful portfolio, I would argue the number one reason to invest in private placements is the benefit of above-market returns combined with below-market volatility.

Cambridge Associates, an index that tracks private equity performance, reports that since 2000, Private Investments experienced an impressive 16% annual return compared to 7.4% from the S&P 500.

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25 Feb: Benefits of Private Investing Part I

Private placement securities are similar to typical stock offerings but to private investors, rather than the public, they allow companies to raise significant capital without having to become a publicly traded company.

Private investment opportunities are typically offered in the early stages of a company’s life when they are trying to grow or acquire key assets. Companies and investors both benefit greatly from the issuing of private placements. Investment companies that use private placements do so by providing opportunities to investors with defined exit and the expectation of an ROI.

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07 Feb: THROW OFF THE CHAINS OF WALL STREET

Heightened volatility in the equity markets and low bond yields have made investment success challenging for many investors, and the future doesn’t hold much promise in the public markets. A recent report by Deutsche Asset Management’s Quantitative Strategies Group forecasted that the long-term (20 years) forecast for the U.S. equity markets is considerably lower than the historical returns of the 1980s and 1990s.

With these lower return expectations, what is an investor to do with heightened return requirements given inflation and the other economic factors increasing financial demands when they retire?

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24 Jan: Why Your Asset Allocation Strategy Needs Adjusting

Did you know there is a vast discrepancy between how individuals and institutions allocate their investment capital?

According to the 2017 American Association of Individual Investors Asset Allocation Survey, the average individual investment portfolio consisted of about 66% equity, 16% fixed income, and 18% cash. While individual portfolios are highly skewed in the direction of equities, the same does not hold true for large institutional investors such as college endowments or pension plans whose asset allocation models look quite different.

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17 Jan: The Exclusive World of Private Investing

Some Americans are getting seasick from Wall Street volatility and are looking for alternative investment options. You may be considering alternative investments as well for placing and growing your money.

But, where to start?

Start where the wealthy put their money. Institutions, such as hedge funds and university endowments, as well as ultra-wealthy investors have long invested in private markets as an alternative to the stock market since growth and returns in the private markets have outpaced those in the public market.

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10 Jan: Tax Strategies of the High Net Worth Investor

Just as in sports, the wealthy know that for growing or maintaining wealth a good defense is just as important as a good offense.

In financial terms, for growing wealth, not only is it important to increase income but it’s equally important to protect that income from the IRS.

Just as zealous as the wealthy are about growing their proverbial “pot,” they are equally fervent about defending that pot from being chipped away by taxes.