Trends Watch: Investor Outlook for ‘Reopening’

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 with Bruno Schneller, Managing Director, INVICO Asset Management AG.

What is your outlook for alternative investments?

With a broad-based reopening coming closer into focus, investors are planning for the next stage in the cycle. We believe geographical, asset class and sector rotations will be key to driving returns over the next 12 months. We expect managers who shift to securities that have lagged in recent years while hedging out broader market risks or avoiding overvalued names will be more likely to generate high-quality returns.

What are the greatest opportunities you see and why?

U.S. equity markets have been wavering due to record-high valuations combined with sharply rising interest rates, and we believe international equities have continued to be overlooked. They offer attractive dispersion and alpha opportunities and have been trading at a compelling valuation discount to U.S. markets.

What are the greatest challenges you face and why?

The ratio of value created in the private markets, relative to that of the public markets, has increased versus what we saw decades ago. The contrast between Amazon.com, where nearly all of the company's value was created in public markets, and Uber, where the company's current public value is less than its last private value, brings this point into focus.

What keeps you up at night?

Not much, except sometimes my sweet little daughter.

The views and opinions expressed above are of the interviewee only, and do not/are not intended to reflect the views of EisnerAmper.