First Impressions from the iGlobal Alternative Investment Summit

Seems like we just finished our big conference flurry, but we’re at it again, attending the third annual iGlobal Alternative Investment Summit in New York. Aside from the fact that it’s taking place in a great city, it’s also providing some excellent content and discussion.

Most interesting to us this morning was a presentation was Victor “Trader Vic” Sperandeo, creator of the DTI, which underlies the Wisdom Tree Managed Futures ETF. It may seem strange to find us nodding along with his comments, given our substantial differences on the asset class, but the presentation’s content had little to do with his product. In addressing investment portfolio construction, he argued that traditional investments were going to be reactionary in an interventionist era – traders are left waiting for various countries’ governments to step in and act, and swinging based on those actions for better or worse:

“It’s a bet on a country’s leadership, and leadership makes mistakes: Hoover, raising taxes during economic stress. Kennedy, threatening the steel industry. Nixon, going off the gold standard… Leadership makes mistakes.”

Now, his answers when pressed about Natural Gas in the DTI and the validity of the seven month moving average were not as strong, but in an era of interventionism, his arguments about leadership and investing smack of truth. Our solution to the volatile leadership conundrum is likely different than his (no worries, agreeing with him doesn’t mean we’re now fans of managed futures retail products), but it was certainly an interesting presentation.

Another noteworthy panel focused on the development of urban areas from a real estate perspective. We are by no means real estate experts, but the portion that focused on the development of infrastructure had us leaning forward. Aaron J. Fossett of Fossett & Associates did a fantastic job contextualizing the conversation, describing the US economy as less a national economy than a statistical conglomeration of regional economies, arguing that, when viewed this way, the investing dynamic changes. However, the largest opportunity, in his mind, lies in public-private partnerships to address the growing infrastructure needs throughout these regions:

“We’re behind Malaysia and Barbados in per capita spending on infrastructure… We lose seven billion gallons of drinking water each year, and sewer overflows result in 10 billion gallons of raw sewage on the streets.”

Gross. But it makes you wonder… If Africa is, as Fossett says, leading the charge in these public-private partnerships, how long will it be before the idea gains broad traction stateside? We’ve already seen it take hold in our backyard, through Rahm Emanuel’s push for such partnerships in Chicago) Will it catch on nationally? Someone in the audience asked how to address investor concerns regarding liquidity.

No one on that panel had a good answer.

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Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

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