Trends Watch: September 28, 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 Pedro Ramos, CEO, Somar Capital Partners.

What is your outlook for alternatives?

We think the outlook for alternatives is very bright. They fulfill an important role of scouring the market for underfollowed and unappreciated opportunities and bringing those to investors in a way that protects downside and also reduces correlation with major market indexes. In investments you need to constantly adapt and move away from opportunities that become crowded, and therefore generate lower risk-adjusted returns, to under-the-radar ideas that provide higher risk-adjusted returns. Alternative investments are in pole position to provide this service to investors.

What is your outlook for the economy?

We see wider and faster change in today’s economy than we ever have in our lifetimes.  Industries across the board are experiencing disruption on a global scale.  Technology and the cheap and immediate dissemination of information have dramatically changed the behaviors of the consumer and we see those changes spreading and accelerating.  This will create some major economic winners/losers, while the effect on the broader economy is going to be a net positive. It creates a resilient economy with major opportunities for investment by identifying early the successful disrupters.

What keeps you up at night?

My responsibility to my two daughters, my investors, and my team. Success in investing requires constant vigilance, and the ability to change your mindset. We relentlessly scour the world for evidence that disproves our thesis. We study all available opportunities to make sure we are selecting the most compelling for our investors. We love our craft and look forward to continuing to attempt to master it until we retire. I would lose my sleep if we weren’t doing that.