Alternative Investments
The global alternative investment space now sits at more than $9 trillion in global assets, and we’re just getting started. Roughly 40% of RIAs are using alternative investments. With the RIA space expanding and alternative investment demand rising among investors – a surge in data, news, and opinion will continue. This channel cuts through the noise to give you the most important actionable insight.
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PE Partnership Terms – Best Practices Callan, an institutional investment consulting firm, released its Private Equity Fees and Terms Study to serve as a reference for institutional investors. This study analyzes the terms and fees for 90 private equity partnerships. Institutional investors can use this information when negotiating and evaluating partnership terms. According to head…
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Alternative Investments: The Case for Emerging Market ETFs
Comparing stock returns from US stocks and those in emerging markets, it turns out that over the really long term, these are nearly the same. Andrew Hallam observes that between January 1988 and May 31, 2020, emerging markets saw an average return of 10.15% per year, while the S&P 500 averaged 10.69%. However, in between, during various periods, the performance varies. “Sometimes, U.S. stocks win. Other times, emerging markets take the prize. It depends on what period you’re measuring,” says Hallam. Emerging market ETFs are a great deal now.
Private Equity: Superior Plus Announces Investment Deal with Brookfield Asset Management
Superior Plus Corp. (TSX: SPB, SUIIF OTC) announced that Brookfield Asset Management Inc., through its Special Investments program, agreed to make a US$260 million equity investment. The deal comes through the purchase of newly created perpetual exchangeable Series 1 Preferred Stock of a U.S. subsidiary of Superior on a private placement basis.
Alternative Investments: Hercules Capital Announces SBA Decision
Hercules Capital (HTCG) has announced that the U.S. Small Business Administration (“SBA”) has issued a “green light” or “go forth” letter inviting Hercules to finalize its application process to obtain a license to form and operate a third Small Business Investment Company (“SBIC”) subsidiary, following the Company’s recent presentation to the SBA committee. Upon approval, Hercules will obtain a third SBIC license held by subsidiaries of the Company and continue to access additional growth capital of $175.0 million of long-term debentures, bringing Hercules’ combined borrowing capacity through the SBIC program to a total of $285.3 million of capital.
Alternative Investments: NGL Energy Partners LP Enters New Loan Facility
NGL Energy Partners LP (NGL) announced that it has entered into a new $250 million term loan facility with certain funds and accounts managed by affiliates of Apollo Global Management (APO). The loan will be used to refinance its existing $250 million bridge term loan facility that was established in July 2019 to finance a portion of the acquisition of Mesquite Disposals Unlimited LLC.
Alternative Investments: Legg Mason’s First Semi-Transparent ETF
Legg Mason has launched The ClearBridge Focus Value ETF (CBOE: CFCV) on the Chicago Board Options Exchange (CBOE), a fund aiming for long-term capital appreciation. The ETF is of the semitransparent kind, a technology offered by Precidian’s ActiveShares format. The active fund managers, in this case, ClearBridge Investments, LLC, can, therefore, keep its strategy confidential in the interests of the fund and its investors.
Alternative Investments: An Interview with Cheryl Pate of Angel Oak Advisors.
Today’s discussion is with Cheryl Pate of Angel Oak Advisors.
We spoke with Cheryl back in September about the community bank debt opportunity. We follow up with a new interview, here.
The world and the banking industry have undergone significant change due to COVI-19 since than so we caught up with her to discuss changes and opportunities in community banks and community bank debt.
Alternative Investments: Global X Launches Active ETF Focused on EM Bonds
ETF-provider Global X announced Wednesday its launch of the Global X Emerging Markets Bond ETF (NYSEAMERICAN: EMBD). It is an actively managed ETF focused on emerging market debt, and does not track an index. Yields on emerging market debt are expected to be more lucrative than traditional bond yields.
Alternative Investments: Insurance Giant Allianz Launches Risk-Managed ETFs
Allianz Investment Management, a subsidiary of Allianz Life Insurance Company of North America, announced Monday the launch of its new ETF product line. The new ETFs address investors’ concerns regarding risk in the current environment from heightened volatility because of the virus outbreak. They, therefore, include features such as buffers, caps, and index-linked returns to inspire confidence in the investors regarding the safety of their capital. The ETFs protect investors from a loss shock (up to a known buffer value) on the one side, but also let them participate in the gains from a rally (up to a cap) on the other.
Alternative Investments: BlackRock Gets Lion’s Share Of Fed’s Corporate Bond ETF Buying
For the first time in history, the U.S. Fed is buying corporate bonds and corporate bond ETFs simultaneously as part of a massive stimulus package. The Federal Reserve Bank of New York announced that the Secondary Market Corporate Credit Facility (SMCCF) will commence purchases of ETF’s on May 12. Seven iShares ETFs from the BlackRock (NYSE: BLK) stable accounted for 48% of the purchases between May 12 and May 19, according to data released by the Fed.
DailyAlts Playbook: America on Fire, Goldman Shorts the Dollar, a $41 Trillion Hole, and the Death of Pensions.
Friday morning, I was out for dental surgery and now I have another surgery in two weeks. Three days ago, I would have told you that the biggest threat to the market rally was the renewed tensions between the United States and China.
DailyAlts Playbook: Hertz Goes Under, The Vaccine Gold Rush, and Just How Rich is Mark Zuckerberg
THE DAILYALTS PLAYBOOK May 26, 2020 DailyAlts Playbook: Hertz Goes Under, The Vaccine Gold Rush, and Just How Rich is Mark Zuckerberg PRIME OVERVIEW Good morning, I hope everyone had a wonderful Memorial Day weekend, despite the ongoing circumstances. While efforts to reopen parts of the U.S. continued over the weekend, I wasn’t surprised to…
Alternative Investments: Asset Managers Need To Up Their Game (BCG Report)
According to a new report from Boston Consulting Group, there is likely to be fierce competition for limited capital in 2020 after the coronavirus crisis. Asset managers will have to deal with these new market realities by taking recourse to technology and gaining an edge through expertise and scale.
Private Equity: Apollo Buys Stake in Albertsons Companies
Apollo Global Management (NYSE: APO) announced certain affiliate-led funds drove the purchase of $1.75 billion of convertible preferred stock in Albertsons Companies. The target is one of the largest food and drug retailers in the United States. The investment will represent approximately 17.5% pro forma equity ownership of Albertsons on an as-converted basis.
Private Equity: Inside the Apollo Global 13F Filings
Private equity and alternative investments manager Apollo Global (APO) was very active in the first quarter.
The firm opened or added to 35 stocks while reducing or eliminating just 17 potions in the quarter.
We know from their conference call that they also were big buyers of high-grade corporate bonds in the quarter. According to Apollo executives, they have already sold most of those for fairly large profits, but they tend to be a longer-term holders of equity positions. They tend to take concentrated positions as 90% of the $7.5 billion public equity portfolio is in the top ten holdings.
DailyAlts Playbook: Hedge Fund Returns, Fed Testimony, Alts Investments, and a Hypothetical Day at the Office
Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the Senate Banking Committee. This is the first time that both men will update Congress on the $2.2 trillion economic package that the Senate helped to pass in March to address COVID.
Private Equity: Blackstone Group Filings Update for Q1 2020
Blackstone Group (NYSE:BX) continued to deploy capital as the market declined in the first quarter of the year. On the private side, Blackstone has been investing in life sciences deals, casino operators, energy companies, and, of course, more warehouses.
DailyAlts Playbook: Vaccine Hopes, Bitcoin Jolts, Softbank’s Woes, and Community Banking 101
THE DAILYALTS PLAYBOOK May 18, 2020 DailyAlts Playbook: Vaccine Hopes, Bitcoin Jolts, Softbank’s Woes, and Community Banking 101 PRIME OVERVIEW Good morning, With the Dow up 700 points on speculation around Moderna’s vaccine trial for COVID-19, I’ll start with a brief note on what’s happening at DailyAlts. Yesterday, we published the May Community Bank Investor…
DailyAlts Playbook: What Dalio is Buying, Davey Day Trader Global, and Restarting the Trade War
The Dow shed 200 points this morning, and while I’m usually not overcommitted to what the Dow is doing, I am looking at geopolitical tensions. We’re back into a barking match with China – this time because the White House has blamed its rival for the spread of COVID. That said, Chinese media are now arguing that if the U.S. blocks supplies of semiconductors to tech firm Huawei, China will launch its “unreliable entity list” and “restrict or investigate” companies like Apple, Cisco, and other tech firms.
DailyAlts Playbook: Back to Basics, Druckenmiller’s Warning, More Stimulus, and Activists Do What Activists Do…
I’m back in the saddle today after a two-day break that was sorely needed. The combination of an arthritic flare and stomach issue has put me back at around 50% to 60%.
Three days is when people start to worry, so I appreciate the emails.
I am very excited about the future and what we are building at DailyAlts.com.
Alternative Investments: Brookfield Asset Management Launches Retail Rescue Plan
Brookfield Asset Management (NYSE: BAM) is going into the retail rescue business.
Brookfield announced the launch of a Retail Revitalization Program to bring much-needed capital and assist with the recapitalization of retail companies with operations in the major markets in which Brookfield operates globally.
The retail investment program will focus on non-control investments in retail businesses to assist with their capital needs during the current disruptive economic environment caused by the COVID-19 pandemic. Brookfield is targeting $5 billion to be put toward this Program.
Artificial Intelligence: The AI That Powers Walmart’s Express Delivery
Walmart (NYSE: WMT) has an inventory of 160,000 items offered through its Express Delivery service that launched last month. The service is already on offer at 100 stores in the U.S. as a pilot test and will be extended to 2,000 stores this month. The system relies heavily on AI.
DailyAlts Playbook: Unemployment Woes, Economic Experiments, M&A Woes, and China… China… China.
THE DAILYALTS PLAYBOOK May 8, 2020 DailyAlts Playbook: Unemployment Woes, Economic Experiments, M&A Woes, and China… China… China. OPENING BELL Good morning, Good morning, There is one figure – and one figure only that matters today. And the U.S. Labor Department reported it before the bell. The agency said that the U.S. unemployment rate hit…
Alternative Investments: An Interview With Tobias Carlisle, Founder of Acquirers Funds
This week, Tim Melvin sat down with Tobias Carlisle, founder of The Acquirer’s Multiple®. Tobias Carlisle is best known as the author of the #1 new release in Amazon’s Business and Finance The Acquirer’s Multiple: How the Billionaire Contrarians of Deep Value Beat the Market.
Alternative Investments: An Interview with Jeffrey Chang of CBOE Vest.
Last week, Tim Melvin talked with Jeffrey Chang of CBOE Vest. His firm offers investment strategies called “defined outcome portfolios.”
These strategies help investors structure their portfolios to provide defined levels of growth, income, and risk.