Alternative Investments

Insights for Financial Advisors: Navigating Client Investment Preferences

Kelly Park Capital — Fri, 14 Jun 2024 13:30:00 GMT

Recent trends indicate that Americans continue to view real estate as the premier long-term investment. According to Gallup’s annual Economy and Personal Finance survey conducted from April 1-22, 36% of Americans favor real estate, followed by stocks or mutual funds (22%), gold (18%), and savings accounts or CDs (13%). Bonds (4%) and cryptocurrency (3%) are seen as less attractive long-term investments.

Adapt and Overcome: Alternative Investments In A Higher For Longer Rate Environment

Kelly Park Capital — Tue, 16 Apr 2024 14:30:00 GMT

If rates are higher for longer, are Alt's better than ever?

Given this weeks conflicting CPI and PPI reports, the chances of a higher for longer interest rate environment seem to be increasing. As we find ourselves in a situation where interest rates are expected to remain elevated over an extended period, there are several compelling reasons to consider alternative investments:

The Ultra Wealthy are Private (Funds) People

Kelly Park Capital — Tue, 13 Feb 2024 17:50:23 GMT

In today's diverse and complex financial environment, having a well-balanced investment portfolio is crucial for achieving long-term financial goals. More and more investors are now recognizing the potential of alternative investments as an essential component in asset allocation.

‘Tis the Season(ality)

Kelly Park Capital — Thu, 18 Jan 2024 21:30:00 GMT

In the intricate tapestry of financial markets, seasoned professionals are well aware that patterns and trends often dictate investment strategies. One phenomenon that has piqued the interest of financial experts is the seasonality in the performance of stock and bond markets. As the calendar pages turn, so too do the fortunes of these markets, and understanding the reasons behind these seasonal fluctuations can provide valuable insights for investors.

Credit where its due: The Rise of the Private Credit Market

Kelly Park Capital — Mon, 11 Dec 2023 19:30:00 GMT

According to recent article in Bloomberg, “Investors in private credit are currently getting better returns than they would from private equity, new data shows…” The private credit market, currently valued at $1.5 trillion, is anticipated to expand by nearly a trillion dollars in the next five years, making it a top consideration for investors.

Beyond the Magnificent 7: Unraveling the S&P 500's Influence Imbalance And the Dangers it May Be Hiding

Kelly Park Capital — Thu, 30 Nov 2023 15:30:00 GMT

According to data from Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, the top 7 companies were responsible for 75% of the S&P 500's gains in 2023. The "S&P7" valuations are beginning to look similar to the Nifty Fifty and the tech bubble in March 2000. There are signs of a bubble nestled within an index that in aggregate shows no cause for alarm.

Private Lending Goes Public

Kelly Park Capital — Tue, 14 Nov 2023 12:25:37 GMT

As banks pivot away from certain lending practices, private funds emerge as nimble contenders, capitalizing on flexibility and tailored risk management strategies.

Highlights

Private lending can be a compelling investment avenue, especially with the rise of lending funds offering a unique opportunity to diversify your portfolio.
Lending funds frequently focus on specialized markets or particular loan types, enabling them to specialize and cultivate expertise in those specific areas.
The low-correlation to public markets can be a game-changer for astute investors seeking to manage risks and attain a well-rounded portfolio.

Understanding Private Lending

A private lending fund is essentially a pooled investment vehicle that focuses on providing loans to individuals, businesses, or other entities in the private sector. These funds are typically managed by professional investment managers or firms with expertise in assessing credit risk and managing lending portfolios. As importantly, the professional managers of such funds have built a network for sourcing the types of loans in which they invest/lend. Additionally, the relationships built in private lending can lead to enhanced returns. A lending fund's ability to foster close ties with borrowers and carefully assess their creditworthiness can result in better risk management and higher returns for investors. This personalized approach contrasts sharply with the more transactional nature of traditional banking.

Bank Consolidation Within the U.S.

Kelly Park Capital — Mon, 30 Oct 2023 13:54:30 GMT

Bank consolidation in the United States shows no signs of slowing down; in fact, it is expected to gain momentum. This surge in consolidation is driven by various market factors that are shaping the banking landscape.

Highlights

The U.S. is estimated to have has many domestic banks as the rest of the world combined.
Bank consolidation is poised to maintain its momentum and even gain speed in the future.
We believe the optimal way to exploit these community and regional banking trends is through an event driven, long/short investment strategy focused on the community and regional banking sectors.

Not a Hard (Asset) Decision: Investing in Home Equity

Kelly Park Capital — Thu, 19 Oct 2023 20:58:36 GMT

Home equity is the largest asset class for approximately two-thirds of American homeowners. Home Equity Contracts (“HECs”) are a relatively new financial tool for homeowners to monetize their home equity without the burdens of traditional debt financing.

The Case for Investing with a Professional Manager Focused on Long/Short, Value-Oriented, Small and Mid-Cap Strategies

Kelly Park Capital — Wed, 11 Oct 2023 11:48:15 GMT

Investing in small and midcap companies can be strategically sound as these firms often have greater growth potential than their larger counterparts. They tend to be more nimble, innovative, and capable of capitalizing on niche market opportunities.