Welcome to the latest edition of our monthly newsletter – your source for the latest in alternative investments.

Dan Vene

Co-Founder and Managing Partner

Co-Head of iCapital Solutions

iCapital Model Portfolios Video

View a brief demonstration of iCapital Model Portfolios on Marketplace and Architect (our portfolio construction tool). 

Chart of the Month

Rolling Stock/Bond Correlations

December 31, 2000 - April 30, 2024

Source: Evestment. Data as of April 30, 2024. For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed.

Correlations between traditional assets (stocks/bonds) continue to be strong, challenging the conventional notion of a counter-cyclical relationship and furthering the need to consider adding exposure to non-traditional assets such as alternative investments.

Spotlight: Beyond 60/40: Episode 20

Monthly Market Roundup

PEI Keynote Interview: Volatility Buoys Co-Investing and Secondaries

The challenging economic environment is expected to continue to generate compelling opportunities for both co-investment and secondaries strategies. Adams Street shares perspectives on recent investor behavior, their investment approach, and what they are hearing from other general partners (GPs).

Separating the Wheat From the Chaff in Direct Lending

While direct lending investments offer the potential for enhanced returns, it takes a skilled manager to identify opportunities and provide consistency in returns with less volatility. Pensions & Investments highlights the views of Trevor Clark, Founder and Managing Partner at TPG Twin Brook Capital Partners, on navigating the current market and evaluating and selecting a fund.

Case Study: Net Lease & Private Credit: A Complementary Allocation

Net lease real estate and private credit continue to gain prominence with investors. U.S. Realty Advisors examines the distinctions between the two investments and shares how a strategic allocation to both may offer a balanced source of income with reduced volatility.

Can Hedge Funds Play the Role?

Whether it’s a sports match or a theater production, every member of the team needs a clear and well-defined role to quickly identify problem areas and achieve a successful outcome. Wellington Management analyzes how to select suitable types of hedge funds for specific roles and combine them in an optimal way to achieve overall portfolio objectives.

New at iCapital

On May 1, Mirador officially became part of iCapital. Mirador is a recognized leader in providing consolidated financial reporting on traditional and alternative investments to families, family offices, wealth managers, and foundations and endowments. By combining Mirador’s comprehensive reporting services and data management capabilities with iCapital’s end-to-end operating system, iCapital continues to enhance the digital experience for customers at all stages of the alternative investment process.

In Case You Missed It

With stocks and bonds displaying their strongest positive correlation in almost 30 years, can traditional 60/40 portfolios still offer the diversification and risk protection that investors expect? Read more.

Monthly Alts Pulse: Episode 10

Tune in for this episode of Monthly Alts Pulse featuring Lawrence Calcano, iCapital Chairman and CEO;
Michael Sidgmore, Co-Founder and Partner at Broadhaven Ventures; and Robert Picard, Managing Director and Head of Private Market Solutions at Hightower Advisors. Listen as they cover the democratization of alternatives, customization of solutions, and this transformational period in private markets.

Market Pulse

Three reasons for continued market optimism

After a 6% drawdown for the S&P 500 in April, it only took 33 trading days for the index to make a new all-time high. Despite worries of stagflation, we believe there are more positives than negatives in this environment and see three reasons why we should be adding to equity exposures, especially if underweight relative to strategic allocations. Learn more in Chief Investment Strategist Anastasia Amoroso’s latest Market Pulse.

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FOR FINANCIAL PROFESSIONALS

The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital Network”) or one of its affiliates (iCapital Network together with its affiliates, “iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.

This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation.

ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative Investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.

iCapital Markets LLC operates a platform that makes available financial products to financial professionals. In operating this platform, iCapital Markets LLC generally earns revenue based on the volume of transactions that take place in these products and would benefit by an increase in sales for these products.

The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.

The iCapital model portfolios are made available for institutional use only by, iCapital Advisors, LLC (“iCapital Advisors”), an SEC-registered investment adviser that advises certain private investment funds available on the iCapital Platform (“Access Funds”) and provides other advisory services, and iCapital Markets LLC (“iCapital Markets”), a registered broker dealer that distributes the financial products included within the model portfolios. iCapital Advisors, iCapital Markets, Institutional Capital Network, Inc., and iCapital, Inc. are affiliates and are collectively referred to as “iCapital”. The iCapital model portfolios themselves are not funds. Additional disclosures and methodologies are available on the iCapital platform, including terms of use and privacy policy.

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