ClearWise Investment, the U.S-based and China-based alternative asset manager, has reportedly announced that their secondary market capabilities will available for competent private investors looking to capitalize on alternative investments generally reserved for institutions and family office clients.
The company’s decision comes as the correlation between traditional and alternative industries continue to tighten as retail investor return profiles have become more tolerant to alternative options to achieve more balanced portfolio performance.
As part of this trend, many investors today believe that private equity placements have considerably outperformed conventional stocks over the past decade and substantial gains can be achieved by investing in private placements as part of a diversified portfolio.
Speaking on which, Mike Hebron who is the Head of Institutional Trading of ClearWise Investment Hong Kong said that although complete data for the performance of alternatives over the last ten years is difficult to quantify, there is zero doubt that the retail segment is aware of the potential for getting early on unicorn and private level companies.
He added that for demand private placements continue to surge and the company is pleased to bring such opportunities to the real investors who perceive the potential of the private and secondary market despite the lack of regulation and safeguards usually afforded by the public market.
Although equity markets across the globe have rebounded strongly from the COVID-19 market crash in March, investors’ sentiment remains cautious as the economic impact of the global shutdown is yet to be felt across the globe. The company reserves a careful approach to the allocation of capital in asset classes that currently trading at an all-time high.
Mr. Hebron said that secondary and private market capabilities seek to provide investors with absolute returns while maintaining a low correlation to conventional markets and high expenditure trading strategies.