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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SP Funds has expanded its suite of Sharia-compliant funds with the launch of The SP Funds S&P Global Technology ETF (SPTE) on the New York Stock Exchange. As North America’s largest family of Shariah-compliant exchange-traded funds (ETFs), SP Funds aims to provide investors access to cutting-edge technological advancements through SPTE.
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Alternative Investments: Cannabis ETFs Because States are COVID-strapped for Cash
According to a report from ArcView, a San Francisco-based cannabis investment and research firm, the cannabis market in the USA will grow to $33.9 billion by 2025 at a CAGR of 18.2%. During the pandemic, marijuana was decreed as essential, and business has been booming since then. Further, more states are expected to legalize cannabis as a source for additional revenues.
Alternative Investments: Investors Back up the Truck On The World’s Largest Gold ETF
According to the World Gold Council (WGC), it appears that investors really loaded up on gold ETF shares on Friday. Investors bought up 27.3 tonnes (974,000 ounces worth more than $1.7 billion at Monday’s prices) of gold via ETFs, the WGC said. The single biggest beneficiary of investors’ gold fixation was the SPDR Gold Shares (NYSEARCA: GLD) ETF, which received inflows of 23.1 tonnes or 742,492 ounces.
Alternative Investments: Investing in Water Resource Stocks Through an ETF
The Invesco Water Resources ETF (NYSE: PHO) holds a number of water resource companies in its portfolio. Drinking water is a precious resource and a need that can never go out of fashion. Clean and safe drinking water will always enjoy consumer demand, as well as their dollars. This ETF could deliver excellent returns in the long-term according to MENAFN.
Alternative Investments: A New ETF for Infectious Disease Companies is Called GERM
The ETFMG Treatments, Testing, and Advancements ETF (NYSEARCA: GERM) is a newly launched fund from the stable of ETF Managers Group or ETFMG. It offers investing exposure to companies engaged in the testing and treatment of contagious diseases.
Alternative Investments: A New WisdomTree Alternative ETF Will Invest in Bitcoin
A filing by WisdomTree for the proposed WisdomTree Enhanced Commodity Strategy Fund shows it intends to invest up to 5% of its net assets in bitcoin futures contracts. The balance of the funds would be invested in four commodity sectors, namely, energy, agriculture, industrial metals, and precious metals primarily through investments in futures contracts. The fund will not invest directly in bitcoin or in physical commodities.
Alternative Investments: Heart-Searching the End of a Negative Fee ETF
Salt Financial just sold its Salt Low TruBeta U.S. Market ETF (BATS: LSLT) to Pacer Advisors. The ETF was the first and only negative-fee ETF, which meant investors got paid to invest in it. At the time of its launch in March 2019, the idea of such a fund was a no-brainer given the relentless fall in fund management fees. Yet, it appears that investors did not find the fund appealing enough. At the time of its sale to Pacer, the Salt Low TruBeta U.S. Market ETF had a tiny $9 million in assets.
Alternative Investments: How ETFs Held Up in a Crisis
Reflections on COVID-19…on ETFs’ 20th birthday in Europe.
Funds Europe checked out ETFs and how they performed during the crisis triggered by a black swan event such as the COVID-19 pandemic.
Alternative Investments: Pacer Acquires Negative Fee ETF from Salt Financial
The Salt Low truBeta U.S. Market ETF (BATS: LSLT) and its sister fund, the Salt High truBeta U.S. Market ETF (BATS: SLT), are being acquired by Pacer ETFs. LSLT is a negative expense ratio ETF.
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.