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Alternative investments
Alternative investments
Outline
Global markets panel Global venture capital Fixed income panel Viewing stocks as bonds Alternative investments
Alternative investments
Alternative investments
Alternative investments
TB: 13% of assets in cash, 3D printing, liquied natural gas, crowd nancing SP: Long Euro, Long cash, Euro value stocks, Africa Others: cash seemed to be common
Alternative investments
Miscellaneous comments
SP
Stay away from big indexes because they concentrate risk. The Euro is like marriage: everybody in wants out and everybody out wants in.
AM
Against policy that causes interest rates and risk to diverge. This increases the wealth gap when high risk low interest consumers lose their job. The Euro is a political project not an economic project Investing in international equities increases not . International currencies are good to have in your portfolio since they are uncorrelated. Keep in mind AM runs a currency mutual fund. Quantitative easing explains the market being at an all time high. Low volatility + rising asset prices = bubble
Alternative investments
China currently does not have an equivalent to NYSE or NASDAQ. Therefore Chinese rms IPO in the U.S.
Alternative investments
Mobile ecosystem. In-car mobile is going to be big. Smartphones are at critical mass. Financial services B2B, B2C. VC student loan funds on the order of $1.2 trillion. Peer to peer lending Collaborative consumption such as kick starer and air bnb Wearable computing The ability to watch multiple channels in the same room on multiple devices will bring families together.
Really? I dont believe this. The old model of a single television supervised by the parents with the whole family together seems more together.
Alternative investments
David Germany
Long-term equity outperforms xed income. One out of three decades xed income has outperformed equities. Rates will rise eventually but the market has already priced that in.
George Friedlander
Large part of demand in the money market is housing. The slope on the muni curve is steep. Might as well go long. Detroit and Puerto Rico defaults are isolated cases. Foreign investment + current account imbalance = vulnerability Dodd-Frank removed the role of credit ratings in establishing capital measures. More risk.
Alternative investments
Yacktman Asset Management employs 9 people and manages $13.7 billion of assets for 100+ clients. Focuses on left hand side of balance sheet. That is, how well rms translate assets into earnings for investors. Believes in concentrated positions.
Top 10 holdings represent 80% of assets under management. Why purchase your 50th best stock pick?
Does not believe in bonds. Just equities plus cash. A portfolio manager should be measured from market peak to market peak. Entry price is important. It will offset a lot of sin.
Alternative investments
Yacktman 2/3
Understand the business model
Fixed assets: lower is better Market leader: yes Sensitivity to business cycles: less is better
Alternative investments
Yacktman 3/3
Low xed assets + high market share + low cyclicality = high risk adjusted return (more bond like). Do not bother talking to company manager or investor relations.
Focus on what they did (historical nancial statements) rather than what they say.
Alternative investments
Traditional investments: Stocks or bonds, long only Alternative investments: behaves different than traditional With alternative investments all risk is manager risk as opposed to market risk since that is supposed to be hedged. Kelly Deponte (KD)
Illiquidity and active management of company owned by the fund. Takes time to play out (3 to 4 years minimum) Hedge funds tend to have a lockup period.
Alternative investments
EK career approaches
Soul mate approach: wait for your perfect career match. EK doesnt believe in this. Good enough approach: nd the career you work well with. EK approach: Find the career you work well with and be passionate about that.