Displaying items by tag: alts

Asia’s hedge fund market is evolving, with diversification beyond long/short equity into multi-strategy and quantitative approaches, particularly in Japan. The adoption of separately managed accounts (SMAs) is rising, offering investors greater customization, risk control, and transparency. 

Allocators are increasingly partnering with emerging managers early, securing better terms and gaining specialized market insights. Transparency and authenticity are becoming crucial, as investors seek managers who openly share their strategies, risks, and past performance. 

Japan remains a key focus, while sectors like artificial intelligence and semiconductors present new investment opportunities. 

Finsum: Despite these trends, raising capital remains challenging for emerging managers, who must establish strong infrastructure and a compelling value proposition to attract investors.

Donald Trump’s stance on renewable energy has created uncertainty, but investors are still finding opportunities in the sector. Federal permitting delays and funding pauses have caused disruptions, though legal challenges may curb their effects. 

Meanwhile, energy firms such as TotalEnergies see long-term potential in the U.S. market and continue to invest in clean power. Enphase Energy has defied expectations with solid earnings and an expanded domestic manufacturing footprint. 

While offshore wind faces setbacks, onshore projects are set to grow significantly this year. Companies like First Solar and Vestas Wind Systems, despite recent stock declines, could benefit from the ongoing transition to renewables.

Finsum: Renewables aren’t dead, but there is certainly going to be more attention on which firms can withstand the tightening that could come with the new administration. 

President Donald Trump announced a massive private sector investment of up to $500 billion to develop artificial intelligence infrastructure in the U.S. The initiative, called Stargate, is a joint venture between OpenAI, SoftBank, and Oracle, with plans to build AI-focused data centers starting in Texas. 

Trump emphasized the importance of keeping AI development within the U.S. and pledged to facilitate the process through emergency declarations. While executives claimed the project would generate over 100,000 jobs, Elon Musk cast doubt on the funding, arguing that SoftBank had secured far less than stated. 

In response, OpenAI CEO Sam Altman dismissed Musk’s skepticism and invited him to visit a data center already under construction. Despite controversy, the investment signals a major push toward expanding AI capabilities and infrastructure within the country.

Finsum: This could be America’s next big infrastructure boom, and it could be key to outpacing the development of AI in China.

Apollo has introduced a tokenized private credit fund, partnering with Securitize to offer on-chain access to corporate lending and structured credit. The fund, available on Solana, Ink, Ethereum, Aptos, Avalanche, and Polygon, marks Securitize’s first integration with Solana and Kraken’s layer-2 network, Ink. 

Apollo Diversified Credit Fund, managing over $1.2 billion, delivered an 11.7% return in 2024, significantly outperforming U.S. Treasuries. Christine Moy of Apollo highlighted its role as a stable, high-yield complement to crypto assets and tokenized treasuries. 

Private credit tokenization is gaining traction, with Securitize CEO Carlos Domingo noting its potential alongside falling interest rates. Apollo sees this initiative as a stepping stone toward decentralized finance innovations, including automated portfolio rebalancing and smart contract-driven collateral management.

Finsum: This is an interesting crossover and perhaps crypto is a natural path to get more alt exposure. 

Public pension funds, including CalSTRS and LACERA, are enlisting consultants and specialists to navigate the intricate structures used by private equity firms to extend the lifespan of investments. LACERA, managing $82 billion as of November, has allocated resources for a new role focused on operational due diligence within its private markets portfolio. 

With private equity increasingly relying on financial engineering, experts stress the need for limited partners to stay informed to adapt to these complex arrangements. Examples of strained assets rolled into continuation vehicles, like Upstream and United Site Services, highlight the challenges of managing leveraged investments in a high-interest-rate environment.

Despite these pressures, some private equity firms, such as Audax, maintain optimism about long-term recovery through operational improvements and strategic adjustments. 

Finsum: Although pockets of distress exist, we remain confident in the resilience of private markets and their ability to weather economic headwinds.