The prevailing market dynamic has changed, with inflation fanning volatility and bonds no longer providing diversification ballast against equities. Active managers that have been employing alternatives for years are well placed to accommodate the new paradigm.
David Di Pilla’s group made its bones flipping unloved real assets into a sprawling network of essential retail centres. Now HMC Capital is leaning into its public/private hybrid style of management and eyeing off investment in a host of sectors.
With almost $600 million worth of SMSF assets held in art – up 54 per cent since 2016 – the original alternative investment is seeing a significant resurgence in popularity.
Cryptocurrencies may take up most of the headlines, Invesco says, but the real investment potential lies in the technology and the trading platforms behind them – despite the shocking FTX blowup.
Infrastructure assets have been gaining investor interest due to their inflation hedging properties in recent times.
The four pillars of private equity investment all bring unique characteristics to the table.
Alternatives don’t have to be African coal mines; in many cases they’re just normal assets like equity or business loans wrapped up in a private market structure.
HMC Capital sees “fantastic opportunities” in current market dislocation.