Global investing can be particularly challenging due to issues of access, significant legal hurdles, and lower levels of transparency. The speakers in this 2011 FOX Fall Forum session discuss methods for identifying and evaluating new opportunities in private equity.
Although all investors now have a greater awareness of the need for a stronger due diligence process, it can be difficult to determine the best structure to put in place for thorough risk analysis, as discussed in this 2011 FOX Fall Forum session.
Researchers predicted in late 2009 that large funds could need much more than their typical five-year investment period to invest their capital. Recent projections consider the more active transaction volume and suggest the overhang would more likely require only six years to fully invest.
The commercial real estate market in New York, San Francisco and Washington may have become overbought in the past year, but wealthy investors can still find attractive opportunities for capital appreciation via direct investment in second-tier markets such as Seattle, Austin and Dallas.
Managed futures are one of the oldest and most established alternative investments, yet many investors are unfamiliar with the strategy's performance traits. A fresh look at the strategy's past performance reveals its tendency toward controlled downside risk, with an asymmetric tendency toward upside performance.
As the investment landscape continues to evolve and become more complex, investors can utilize pooled funds to maintain control of key asset allocation decisions while capturing the benefits of a highly diversified, well-constructed, lower-cost portfolio of complementary strategies.
The FOX Deal Exchange session at the 2011 FOX Fall Forum had the objective of supporting a community of like-minded family investors who are interested in actively investing together in private equity funds and direct transactions. All participants were FOX members. Six members provided an in-depth overview of the deals, and eight additional participants briefly summarized other investments. All 14 had a lead investment role in the opportunities.
Master limited partnerships represent a niche asset class that is gaining attention for its attractive yield potential, historically low correlation to other asset classes, and potential tax benefits. Strong industry fundamentals, attractive valuations, and above-average dividend yields provide a compelling entry point for investors looking at MLPs.
The authors have contended since late 2008 that the global deleveraging process is likely to occur in multiple stages and last until 2014 or 2015. Investors need to be aware of this cycle in allocating assets and to focus on capital preservation while resisting the temptation to be swayed by short-term volatility.
Investors often overestimate the cyclical risk involved with high-yield bonds. Buying these bonds today with a 12- to 18-month horizon makes sense. An analysis of prior cycles shows that investors with such a horizon or longer can hold on and eventually see the benefits of declining spreads and current income.