The Art of Making an Impact
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June 2017 AlphaFOR INSTITUTIONAL INVESTORS & ASSETQ MANAGERS KEEP YOUR ALPHA LUXURIOUS MEXICO GIVE ME DELTA Real estate opportunities Measuring PE performance CRYPTOCURRENCY TIMBER! Bitcoin soars after Turnaround in Japan move Phaunos timber fund PE FUNDS GROW EUROPEAN DRIVE Invest Europe Boston Partners reveals PE data opens in London The art of making an impact www.AlphaQ.world Photo: Claudia Quiroz, Quilter Cheviot MAXIMIZE PERFORMANCE. MINIMIZE COST. It’s 4:05 PM Do you know where your alpha went? (646) 658-3580 / [email protected] / tradeinformatics.com EDITORIAL he last issue of AlphaQ saw a 3,000 per cent increase in Twitter activity for a perfectly reputable story on Jacob Ma TWeaver of Cable Car Capital’s approach to shorting, because there was a reference to recreational drugs in the headline. Bearing that in mind, with the June issue, let me bring you the agony and the ecstasy of impact investing, a new term for investment which encompasses ethical investment, ESG and SRI. New players in the field believe that investors don’t have to give up any return in favour of investing ethically. The sustainable theme continues with news features on timber ELEANOR ROSTRON fund Phaunos which offers a turnaround story, and KBIGI which offers natural resources alongside its global equity offering. In other news, James Williams examines why USD90.6 billion Boston Capital Partners has opened a London office, bringing the firm’s value investment approach to Europe. We also look at Mexican real estate and Dr William Charlton, Managing Editor Beverly Chandler Email: [email protected] Managing Director and Head of Global Research & Analytics at Contributing Editor James Williams Pavilion Alternatives Group, LLC writes on measuring private Email: [email protected] Online News Editor equity performance. Mark Kitchen Email: [email protected] Finally, our regular columnist, fund manager Randeep Grewal, Deputy Online News Editor Mary Gopalan Email: [email protected] takes a deep dive into car and car financing data in a frustrating Graphic Design Siobhan Brownlow and ultimately frustrated attempt to renew his wife’s vehicle. What Email: [email protected] Sales Managers does it all mean for investors, he asks? Simon Broch Email: [email protected] Enjoy! Malcolm Dunn Email: [email protected] Beverly Chandler Christine Gill Email: [email protected] Managing editor, AlphaQ Marketing Administrator Marion Fullerton Email: [email protected] Email: [email protected] Head of Events Katie Gopal Email: [email protected] Chief Operating Officer Oliver Bradley Email: [email protected] Chairman & Publisher Sunil Gopalan Email: [email protected] Published by GFM Ltd, Floor One, Liberation Station, St Helier, Jersey JE2 3AS, Channel Islands Tel: +44 (0)1534 719780 Website: www.globalfundmedia.com ©Copyright 2017 GFM Ltd. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. Investment Warning The information provided in this publication should not form the sole basis of any investment decision. No investment decision should be made in relation to any of the information provided other than on the advice of a professional financial advisor. Past performance is no guarantee of future results. The value and income derived from investments can go down as well as up. AlphaQ June 2017 www.AlphaQ.world | 3 CONTENTS June 2017 AlphaFOR INSTITUTIONAL INVESTORS & ASSETQ MANAGERS KEEP YOUR ALPHA LUXURIOUS MEXICO GIVE ME DELTA Real estate opportunities Measuring PE performance CRYPTOCURRENCY TIMBER! Bitcoin soars after Turnaround in Japan move Phaunos timber fund PE FUNDS GROW EUROPEAN DRIVE Invest Europe Boston Partners reveals PE data opens in London 17 22 27 The art of making an impact NEWS FEATURES 15 Boston Partners opens London office James Williams writes that US value www.AlphaQ.world Photo: Claudia Quiroz, Quilter Cheviot 05 Education technology offers equity investment managers Boston investment appeal Partners, with USD90.6 billion of assets Interview with Benjamin Vedrenne- Companies featured in under management, has established a Cloquet and Charles McIntyre, this issue: footprint in the UK co-founders of IBIS Capital, a London- • Amundi Group based investment manager in disruptive 17 Luxury real estate in Mexico set • Anavio Capital Partners and educational technology to grow • Anthesis Consulting Mexico’s retail real estate market Group 06 Dynamic fund brings three strategies presents compelling investment • Athena Capital Advisors together opportunities for international investors, 2015 saw the launch of Anavio Capital according to Jimmy Arakanji, co-CEO of • Boston Partners Partners and their event driven fund, Thor Urbana • Crown Agents a launch which brought together three Investment Management managers experienced in three styles 20 Keep your alpha, give me delta • Ethereum Dr William Charlton, Managing Director • Hargreaves Lansdown 08 Cryptocurrencies enjoy dramatic run and Head of Global Research & Analytics Cryptocurrencies have had another • IBIS Capital at Pavilion Alternatives Group, LLC writes extraordinary growth spurt, with bitcoin on measuring private equity performance • IFC doubling in a month and then falling • Invest Europe back to an early June figure of around 22 Beware the unfettered machine • KBI Global Investors USD2,800 Roy Niederhoffer, graduated from • Lyxor ETF Harvard with a degree in Computational 09 Natural resources and global equities Neuroscience in 1987 and has seen a lot • Morningstar dominate KBIGI’s portfolios of quantitative hedge funds come and go • RG Niederhoffer Capital Interview with Geoff Blake, director, head since 1993 Management Inc of business development and client • OWLshares services at KBI Global Investors, a Dublin 24 US Treasuries could reach 3.25 per • Pavilion Alternatives based institutional asset manager cent in 2018 Group LLC Global bond yields are expected to • Phaunos Timber Fund 11 Fund gets new energy from timber fluctuate over the course of 2017 but turnaround should rise steadily with US 10-year • Quilter Cheviot Stephen Addicott is a partner in the Investment Management treasuries breaking the 3 per cent barrier timberland group at Stafford Capital by early 2018 writes James Williams • S-Network Partners, with assets of USD2.3 billion • Sage Advisory in timber including the USD300 million 27 European private equity investments • SEB Phaunos Timber Fund exceed EUR50 billion • Smith & Crown Latest figures released by Invest Europe FEATURES show that private equity fundraising in • Stafford Capital Partners 2016 reached EUR74.5 billion, a 37 per • Sustainalytics 12 Cover story: cent increase and the highest level • Thor Urbana The art of making an impact since 2008 Beverly Chandler writes that sustainable • TokenMarket or socially responsible investment has a 30 Driving data • Tribe Impact Capital new title, impact investing, and the sector Randeep Grewal deep dives into car and • World Bank Group is beginning to enjoy real growth car finance data this month in a bid to • Worthstone replace his wife’s vehicle and avoid the • XBT Provider many pitfalls. What does this mean for investors, he asks. AlphaQ June 2017 www.AlphaQ.world | 4 ALPHAQ NEWS FEATURE Vedrenne-Cloquet predicts that Education technology offers organising platforms such as Netflix and Amazon will move into education. investment appeal “Platform players will recommend personalised content,” he says. “And another example is the globalisation enjamin Vedrenne-Cloquet and of content and curriculum. With BCharles McIntyre are co-founders digitalisation comes global competition of IBIS Capital, a London-based and the opportunities for brands to investment manager split across compete and expand globally, in the various operations, partly investment same way as we saw global brands and partly giving advice. But the whole merging in other industries. Education focus of the firm is on media, health is embarking into an unprecedented and education technology. phase of simultaneous consolidation, It is on the last that Vedrenne- globalisation and digital reinvention. Cloquet has focused, establishing This creates a unique window for the EdtechXGlobal platform, a whole investment opportunities. ‘ecosystem’ play for EdTech globally, Benjamin Vedrenne-Cloquet If the tip of the iceberg in digital from which the firm not only produces education is the emergence of global research, thought leadership and online higher education platforms networking events, but also originates such as Edx or Courser, there is even and executes investment opportunities. deeper and more disruptive innovation The platform and ‘ecosystem’ play happening in the primary/secondary mean that Vedrenne-Cloquet gains school markets and in the corporate access to the decision makers and a training market. proprietary deal flow in the EdTech McIntyre says: “The profit comes space, he says, with recent news that in a number of different ways. he is linking up Google Education Historically, there is always profit in and nine other organisations to set education, but the modern version is up a new London EdTech Week the supply of tools supplying schools