Optomise Alternative Investments delivering on targeted returns
Achieving a diversified investment portfolio of equities, bonds and cash is often the catch phrase in traditional investing.
Gadi Cohen, Director at Optomise Alternative Investments believes that further diversification should be considered by investing about 5% to 10% in alternative investments, which provide uncorrelated performance to general macro-economic factors.
He does not suggest replacing stocks but rather adapting to a world where further diversification is needed due to the increased volatility in the markets.
Optomise has shown that even during tumultuous markets swings and volatility with the right mix of alternatives, one can balance a traditional portfolio with excess returns.
Over the past five years Optomise has provided returns in excess of 15% in their alternative investments, with no capital losses.
The alternative investment house focuses on renewable energy, asset rental business and private debt.
Some examples of targeted and actual returns are their investments in Voco Hotel in Rose bank providing and delivering 16.5%, the Rockefeller Hotel in Cape town, delivering 15%, asset rental investment targeting and providing 19% return and their renewable energy investments providing 17% return.
Cohen believes that’s their success in investment performance is based on identifying and partnering with teams with “good people”, who have strong operational ability and a sound and quantified track record of past performance of their respective industries.
The realm of investing in alternative investments has however historically only been accessible to the ultra-wealthy who can afford complex offshore structures, with large amounts of capital to invest.
Optomise have therefore set up a cost effective and hassle free offshore investment platform with a sole focus of providing investors with the ability to access alternative investments in hard currency.
The team has access to unique private investments which provide attractive returns which are uncorrelated to the listed markets.
The team is involved in the private equity space both locally and in the US, with access to investments that lie in the $5 -$15 million mark which is usually too small for the US players but is a sweet spot for South African investors given the weak Rand.
These investments tend to yield higher returns than larger one due to there being strong investment fundamentals which generate consistent cash flows and are uncorrelated to macro-economic factors and market sentiment.
Optomise recently launched a US Renewable Energy Fund with a focus on the aviation industry, with a projected return of 3 times capital invested.
“That is one hell of a return, but we believe that through our engagements with our partner in this fund, Clearskies and the information and data that have provided us, we will deliver it over the next 5 years,” concluded Cohen.
You can learn more about what Optomise Alternative Investments has to offer here.
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