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Are Investors Viewing Markets Through Rose Coloured Glasses?

18 July 2018

How are investors viewing markets at the moment? Has the bull market run made people forget the mistakes of the GFC and given them a rose-coloured perspective of financial markets? In the years post 2008 I have lost count of the number of conversations I have had with investors who scaled back their allocations to alternatives and piled into index funds saying \"Why would I pay 2 and 20 for a hedge, PE or VC fund when I can pay basis points and earn double digit returns?\". The market focus seemed to shift to cost and return from risk and return. With many markets now looking fully valued, many index funds providing concentration risk due to their market cap weightings and geopolitical risk continuing to rise is it time to invest in some new clear lenses, reevaluate risk and reconsider the role alternatives can play in a portfolio? SunSuper seems to be of that view.

Ian Patrick, CIO for Australia\'s SunSuper was recently quoted on www.dealstreetasia.com saying “As you get into the late part of the cycle people forget how stretched listed valuations get,”...“Unlisted valuations don’t get as stretched so there’s relative value there.”

Is it time to prepare for an end to or at least a slowdown of the current global economic expansion? With trade wars looming and many banks starting to tighten lending conditions it could be time to take a closer look at alternative investment opportunities.

Strategic Capital Services represents several alternatives managers with impressive track records.

I will be in Australia and New Zealand in August with Dr Finian Tan, founder and chairman of leading VC, Vickers Venture Partners who will be raising Fund VI. We are visiting Perth, Melbourne, Auckland then Sydney and Dr Tan will speaking at Private Wealth Network events in 3 of those cities.

In September I am bringing Copper Street Capital to Australia and New Zealand. Winner of the EuroHedge award for 2017\'s Best Event Driven Manager Copper Street Capital is a financial sector-focused manager investing across both listed and unlisted markets and is headed by former Barclays Investment Bank co-CEO and COO, Jerry del Missier.

In addition SCS is working with New York based multi strategy manager Halcyon Capital Management. With a range of offerings including US and European CLOs, a European Credit Opportunities Fund, a Litigation Financing Fund, a Multi Strategy Fund and a very flexible approach to creating tailored investment portfolios via managed accounts Halcyon brings a 30+ year track record, institutional quality infrastructure and significant expertise managing assets through multiple cycles and environments.

To learn more about these opportunities or to schedule a call or meeting please contact me at anthony@scs-ltd.net or call +64 212 410 118.

Anthony McNaughten