Monday, 01 April 2019 19:20

Has the window already closed to move out of traditional investments?

Written by Dalma Capital

$10tn has flowed into alternative investment markets since they were founded, and skilled investors at the 8th AIM Summit are sharing their strategies.

 

In times of great economic change, investors are faced with three directions. Many will stay locked in the past, in giants like GM, then are shocked when giants declare their losses. Some see the present opportunities, the winners in the innovation race like Apple and Facebook, where the risk is buying in after the peak. Today skilled investors are balancing their portfolio by looking to the future, to the winners and innovators of tomorrow, in the emerging alternative investment markets.

But the window of opportunity to shift investment strategies may already be closing. Dalma Capital CEO Zachary Cefaratti holds the strategic overview of AIM’s future. “We estimate $10 trillion have flowed into alternative investments since they emerged in the mid-nineties. By 2023 we will be at $14 trillion. At the same time, investors have increasingly adopted low-cost passive investment products for beta exposure to liquid markets, as well as common systematic risk factors.”

“We have entered the late stages of economic and credit cycles. The shift to higher interest rates, the decline of retail and other industries disrupted by technology, are clear indicators of the new economic terrain. Skilled investors are looking to uncorrelated investment opportunities in alternative investment markets.”

Companies that have thrived as alternative investment magnets include online clothing retailer ASOS and life sciences specialist Abcam, achieving multi-billion dollar capitalisations. The high rewards of AIM investments also represent higher risks, making a skilled approach to navigating them essential. Now in its 8th year, the AIM Summit provides essential strategic insights to investors.

Bringing together the strongest strategic thinkers in alternative investing.

The 8th Annual AIM Summit lands at a critical moment for alternative investing. With new players flooding into alternative markets, strategy is more important than ever. The AIM summit gathers hedge funds, private equity, private debt, venture capital and other alternative investments - the fields best strategic minds - connecting them with the world’s leading alternative investment managers.

“Investors are enthusiastic about AIMs,” notes Raha Moradi, Managing Partner of AIM Summit, “as part of a balanced portfolio to hit their long term goals. But achieving those goals needs great skill and deep knowledge of the relevant markets.”

“The summit’s line-up of 60 speakers, panellists, and moderators - including The Financial Times, CNBC, Preqin, and IE Business School - are carefully curated and selected to showcase emergent strategies and share inside advice only known to experts already deep within the alternative markets.”

The AIM Summit is supported by AIMA and CAIA associations. The expert voices include Sabah al-Binali - CEO, Universal Strategy and Vice Chairman of the Board for The National Investor, and James McCormack, Global Head of Sovereigns with Fitch Ratings

“At a time of uncertainty in the conventional equity and bond market alternatives offer a compelling alternative for astute investors,” Said Mr Sabah al-Binali. ‘’The AIM Summit is an important event that allows me to learn about the state of the alternative market and to connect with managers’’

James McCormack confirmed the summit's centrality. “As concerns mount about slowing global growth and whether policymakers can respond, there is scope for political and geopolitical issues to take centre stage, and investors need to be mindful of the risks.”

Revolutions in fintech like cryptocurrencies, old industries disrupted by new technology, the shift to a high-interest rate paradigm - the turbulence in the economic atmosphere is everywhere, and once safe investment strategies look increasingly uncertain. With alternative markets growing at high speed the question for investors is how long they can afford to stay uninvolved in the future.