Alternative Investing Report - December 30, 2024
Vincent Alternative Investments
Keep up-to-date on the latest alternative investing news and insights in less than 5 minutes per week.
Happy Monday. More RIAs are planning to invest in alternative assets, mortgage rates are up again, states are considering creating Bitcoin reserves, and accounting startup Bench folded. Let’s dive in! ?
?? Listen: To the latest episode of Smart Humans, where Slava Rubin talks with Cambria Investment Management founder Meb Faber about why investors should look at emerging markets.
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?? WEEKLY MARKETS
?? RIAS AND ALTS
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92% of registered investment advisors (RIAs) currently allocate parts of their clients’ portfolios to alternative investments, with 91% of them planning to add to their allocations in the next two years, according to the CAIS-Mercer Alternative Investment Survey of 550 financial advisors. The median client portfolio managed by those surveyed falls between $2 million and $5 million, with 35% of portfolios greater than $5 million. More than three-quarters of those surveyed allocate over 5% of client portfolios to alts, and half allocate 10% or more. The most popular asset classes are private credit, private equity, and real estate.
? TAKEAWAY: It is clear that some investment into alts has become an expected part of almost every high net-worth investor’s portfolio. Easier access to certain asset classes, and continuing education about others, will only boost those allocations going forward. When looking at what types of private market investments RIAs are planning to introduce to their clients in 2025, asset and sub-asset classes such as AI (28%), Venture (19%), Sports (15%), and Art & Collectibles (1%) still have plenty of room to grow.
?? NOTABLE NEWS
?? Mortgage rates keep rising: Despite the recent Fed rate cut, the average 30-year fixed mortgage rate rose from 6.72% to 6.85% as the number of expected rate cuts for 2025 fell from four to two.
?? State Bitcoin reserves: Texas, Pennsylvania, and Ohio have all seen bills proposed in state legislatures to establish Bitcoin reserves, as the incoming Trump administration considers establishing a federal one. Of course, these bills must become law first, but it does show governmental interest in holding digital assets.