Trends Watch: June 15, 2017

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.  

This week, Elana talks to Luis D’Amato, Partner/Portfolio Manager, Aston Capital.

What is your outlook for alternatives?

I believe the biggest issue for alternatives will continue to be the debacle of passive vs. active. In my view, the market moves in cycles, and the passive industry has been so successful over the past years because we have been through a very strong bull market. At current price levels, investors will start paying more attention to intrinsic value of companies and fundamentals should prevail. In this scenario, hedge fund managers, which will be trying to extract relative value with lower beta exposure, should have better adjusted returns than pure passive investments.

What is your outlook for the economy?

If President Trump’s agenda goes through, it should be positive, especially with the tax cuts. But if it gets complicated to approve, we may see asset prices retrieving a bit.

What keeps you up at night?

A possible real estate burst on the retail sector.