Daniel Nikic’s Post

Actively managed funds have been losing ground in public markets for 20 years. We predict private markets are going the same way. What we’ve seen from the public markets is crystal clear: Take human emotions out of the picture, and decision-making improves. Even where human decisions could be marginally better, the added work and manager incentives make the investment products more expensive. And it is just not possible that every manager is “top quartile” consistently. Sure — in early-stage venture capital investing, where there’s no reliable data, judgement, deep research and active support are paramount. But that still will not help to be consistently among the top quartile. At least the possible return differential between the best and the average (also after the performance fee) may make it lucrative to bet on specific managers to beat the market. In the context of growth equity and pre-IPO, there is already so much in the data and (secondary) market prices. And betting on “beating the market” is a costly strategy (given the 20% performance fee cut), as the differential between the best and average is not justifying that anymore. That’s why we systematically invest in the Top 20 pre-IPO tech companies in one portfolio. Our approach is not 𝘄𝗵𝗶𝗰𝗵 unicorn is going to be the best performer over the next 10-12 years. It is rather about that we believe investing systematically into 𝗮𝗹𝗹 𝗧𝗼𝗽 𝟮𝟬 is a smarter approach. And most importantly at lower cost and no performance fee compared to other private market offerings.. On top of that, having clear, systematic investment rules (a 100% objective rule book) enables us to look back in time (using the best available historical data). We did this exact thing with Morningstar Indexes that created a specific index to validate our approach over the past 10 years. You can’t do that with discretionary funds, because you can’t recreate a perspective from the past when the decision had to be made. Still not convinced? We’d be happy to field your questions in the comment section below👇 For more insights like this have a look at our newsletter: https://lnkd.in/ec7RS2aS #investing #privatemarkets #passivestrategy #discretionary #systematic

𝗣𝗮𝘀𝘀𝗶𝘃𝗲 𝗩𝗦 𝗔𝗰𝘁𝗶𝘃𝗲 𝗙𝘂𝗻𝗱𝘀 If you've been following me for a while, you're aware that my journey began in the world of passive funds. However, over the past few years, I've dived into the fascinating, diverse, and complex arena of active funds. Though to share few points on why you should consider allocating active funds in your portfolio: 1️⃣ 𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗲 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗠𝗮𝗿𝗸𝗲𝘁 𝗜𝗻𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝗶𝗲𝘀 - Active managers can exploit market inefficiencies and take advantage of opportunities that passive strategies may miss 2️⃣ 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 - Active managers possess specialized knowledge and expertise in certain sectors or regions. This can lead to better investment decisions. 3️⃣ 𝗔𝗰𝘁𝗶𝘃𝗲 𝗦𝗵𝗮𝗿𝗲 - Concentrated portfolios with 𝘧𝘦𝘸𝘦𝘳, 𝘩𝘪𝘨𝘩-𝘤𝘰𝘯𝘷𝘪𝘤𝘵𝘪𝘰𝘯 and 𝘣𝘦𝘵𝘵𝘦𝘳 𝘢𝘯𝘢𝘭𝘺𝘻𝘦𝘥 holdings can deliver superior returns compared to overly diversified, index-like funds. 4️⃣"𝗟𝗼𝘁-𝗟𝗶𝘁𝘁𝗹𝗲, 𝗟𝗶𝘁𝘁𝗹𝗲-𝗟𝗼𝘁"- A market condition where a lot of securities are mispriced by a little, and a little are mispriced by a lot. Active managers can identify and exploit these small mispricings to generate returns. 𝗖𝗼𝗿𝗲 𝗮𝗻𝗱 𝗦𝗮𝘁𝗲𝗹𝗹𝗶𝘁𝗲 This strategy in investments 𝘤𝘰𝘮𝘣𝘪𝘯𝘦𝘴 a stable, low-cost core portfolio with targeted, higher-risk satellite investments to optimize returns and manage risk. This approach leverages broad diversification for stability while capitalizing on specific market opportunities for growth. Research done by 𝘚&𝘗 𝘎𝘭𝘰𝘣𝘢𝘭 highlights that the core-satellite approach can deliver the benefits of both indexing and active management, using a combination of strategic and tactical allocations to 𝗲𝗻𝗵𝗮𝗻𝗰𝗲 𝗼𝘃𝗲𝗿𝗮𝗹𝗹 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲. Just a few open-minding points. Were you familiar with these? #InvestmentStrategy #PortfolioManagement #ActiveInvesting #PassiveInvesting #Diversification #FinancialPlanning #InvestmentTips #WealthManagement #ETFInvesting #MarketInsights #SmartInvesting #RiskManagement #FinancialGrowth #InvestmentResearch

Market Masters With Top Market Guru Ravi Dharamshi, Founder & CIO, ValueQuest Investment Advisors Tune in to our live market show 'MARKET MASTERS' with Ravi Dharamshi, Founder & CIO, ValueQuest Investment Advisors as he shares invaluable insights on the Market, and strategic sectors for investors. Discover key investment opportunities and explore potential growth areas. Don't miss this exclusive session with a seasoned professional who will guide you through the dynamic landscape of investments, helping you make informed decisions in today's ever-evolving financial markets. Join BTTV for a conversation that could shape your investment strategy. Watch LIVE: https://lnkd.in/eMgN4KMb | #marketmasters #marektguru #marketexpert #protfoliomaking #marketupdate #businessnews

Investor domain expertise does matter. Companies that received funding from a lead investor with high domain expertise were 1.2x more likely to successfully exit via an IPO or acquisition than companies that received funding from a lead investor with low domain expertise. EMERGING

🌟 What’s on the minds of Limited Partners (LPs) as we approach 2025? 🌟 Private Equity International’s LP Perspectives 2025 Study offers a fascinating window into the current pulse of private markets. Here’s what’s driving optimism and shaping strategies: 🔍 Green shoots of recovery: LPs are signaling renewed confidence in the asset class as the market shows signs of bouncing back. 💡 Key priorities for LPs: • 📈 Fundraising trends and outlooks • 🌱 ESG considerations becoming non-negotiable • 🔄 The growing importance of secondaries • 🤝 GP stakes strategies gaining traction • 🤖 Artificial intelligence and its role in investment decisions As private markets evolve, LPs are clearly doubling down on diligence, innovation, and long-term value creation. The question is: How are you preparing for these shifts in 2025? https://lnkd.in/eddZGyGw #PrivateEquity #LimitedPartners #ESG #GPStakes #ArtificialIntelligence #Fundraising #Secondaries #PrivateMarkets #InvestingForTheFuture #Sustainability #Innovation #FinanceLeadership

As capital flows pivot towards new investment territories, private market firms emerge as epicenters of innovation and progress. Here, asset managers not only unlock access to promising investment prospects but also immerse themselves in the forefront of groundbreaking developments. Learn why firms are making the shift and how to adapt for success! https://bit.ly/47pcXuu. #ArcesiumInsights #PublictoPrivate #Assetmanagement #financialservices

Forecasting the future of investments, Excite Venture Invest's latest market outlook offers a strategic overview of collateralized asset investments. With a keen focus on emerging trends and sector-specific analysis, our insights are tailored for investors aiming to optimize their portfolio for the future. Discover our expert forecasts and strategic insights today. 🌟 Access our comprehensive market outlook by visiting ➡️ https://lnkd.in/dnyryYv6 ⬅️ #ExciteVenture #ExciteVentureInvest #ColumbusOhio #InvestmentOpportunities #CollateralizedInvesting #AssetBackedInvestments #SecuredInvestments #AlternativeAssets #DebtSecurities #StructuredProducts #InvestmentPortfolio #FixedIncome #RiskManagement #CapitalProtection #PassiveIncome #AlternativeInvestments #WealthBuilding

New Article: ‘Enhanced Indexation’ Gains Momentum as Investors Shift Gears: https://okt.to/WryLul Asset owners are grappling with fundamental tensions within equity portfolio design. The runaway performance of tech titans has led to fears of market over-concentration, while at the same time, investors appear increasingly reluctant to take significant active risk versus the benchmark. In this article, Robert Doyle and Weichen Ding discuss growing demand for benchmark-aware strategies, whether active (‘core’) or quasi-passive (‘Enhanced Indexation’). Oliver Wade #Equities #institutionalinvestors #onyourside

A rules-based equity investment offering can serve as a strong complement to a fundamentally driven product suite. When built within a transparent and risk-controlled framework, a model-driven solution can provide the insights required to align exposures to the right stocks at the right time. With fundamental active management increasingly struggling to deliver consistent outperformance versus benchmarks over the medium-to-long term, Trendrating offers investors the necessary technology and analytics to address the increased complexity of stock trends. Importantly, by its very nature, such a solution is able to avoid a number of the pitfalls of human judgement and behavioral drawbacks that often negatively impact an investment process. Contact us if you would like to go through a brief demo session of our alpha generation and enhanced risk control platform, focusing on the investment universe of your interest and find out how our AI-driven, award-winning rating methodology can easily fit into any decision process, adding an extra layer of intelligence.

Can Technology Revolutionize Portfolio Diversification? Question: How can global investment platforms enhance portfolio diversification? Answer: Technology-driven global investment platforms are transforming portfolio diversification by providing access to a broader range of assets and markets. These platforms enable investors to diversify their portfolios across geographies, sectors, and asset classes, reducing risk and enhancing returns. With real-time data, advanced analytics, and user-friendly interfaces, investors can make informed decisions and optimize their diversification strategies. How has technology improved your investment diversification? 👉 Like if you’re excited about the potential of global investment platforms! 👉 Share to spread the knowledge! 👉 Comment with your experiences! #MDMarketInsights #businessanalysis #capitalmarkets #financeindustry #financialservices #investmentanalysis #TradeFloor #dataanalytics #riskmanagement #tradingstrategies #marketresearch #investmentmanagement #assetmanagement #fintech #regulatorycompliance #portfoliomanagement #derivatives #marketanalysis #financialtechnology #quantitativeanalysis #investmentstrategy #businessintelligence #financialinnovation #economicanalysis #hedgefunds #privateequity #TradingSystems #datascience #riskanalysis #financialdata