The COVID-19 Virus and Financial Markets Volatility
Here at US Capital Global we are intrinsically cautious by nature and put the health, welfare, and prosperity of our personnel and our clients front and center. We are focused on the Alternative Investment and FinTech sectors, and accustomed to careful and dispassionate assessment of unusual situations for investments. This disciplined approach spills over to our assessment of world events as well.
Regarding health and welfare, we held an employee meeting recently in our San Francisco headquarters where we addressed the current health concern about the COVID-19 virus, a virulent flu-like disease spreading through world society. Currently, there is no vaccine against the virus even for those who are elderly and most vulnerable with health conditions. At a time like this, we believe it is important to have everyone maintain the best personal health and best-practice social health habits. To that end we are recommending people stay home from the office if they are exhibiting even the slightest cold and flu-like symptoms until they are non-symptomatic.
Under normal circumstances, where the vast majority of the most vulnerable population can proactively take advantage of vaccines, people might take symptom suppressing medications and push to continue to work and go out in the public. Now, to help us protect this segment of society and each other, we think it would be better to stay home until you recover. This, in addition to more vigilant personal habits about avoiding hand shaking, more hand washing, and keeping hands away from faces, will go a long way to preserving personal health and the health of those around us.
As to the financial markets, again we are focused on Alternative Investments and FinTech applications of financial and investment best practice. The current stock market volatility, although triggering a similar concern to the financial crisis of 2008, is quite different in nature from that crisis, and in our view, will be much shorter in duration. Events like these are a compelling reason alternative investments have been growing allocations now and have helped garner increased interest during the last major recession. For instance, our fixed income alternative business credit income fund (US Capital Global Business Credit Income Fund LP) performed as hoped after the last recession, meeting or exceeding target returns to investors, net of fees, with no down quarters and with steady net asset values unlike the public markets. While past performance has no guarantee of future results, we have no reason to believe we will not see similar performance as a result of our disciplined approach to alternative asset management.
Some of our portfolio companies in Alternative Fixed Income are gold-backed credit investments like Raptor International Ltd and Metals House, which we consider minimally corelated with the liquid securities stock market and some might say counter cyclical. They include also our growth equity portfolio companies in Norway focused in smart city development, our Danish portfolio company executing on an economically sustainable delivery SAAS, and a fully regulated and operating digital world wide bank specializing in servicing investment funds, family offices, and digital assets. They also include GetAssist, connecting service providers to consumers within the service provider community, and finally Koine Money Ltd, a UK-based infrastructure technology company making digital securities and crypto currency compliant for institutional investors and safer for retail investors. (For additional information on these issuers, including important disclosures, see the offering materials, available at www.uscgs.com.)
In conclusion, please take reasonable precautions for your personal health and carefully consider being additionally thoughtful and considerate towards those who are most vulnerable during this flu-like outbreak by avoiding people when you are ill and not hoarding items needed by the most vulnerable. On investments, carefully consider an appropriate portfolio that is properly balanced with regard to liquidity, currently volatile securities, and longer-term alternative investments.
Jeffrey Sweeney
Chairman and CEO, US Capital Global
Securities offered through US Capital Global Securities, LLC (“USCGS”), member FINRA/SIPC. This is for your information only and is not an offer to sell, or a solicitation of an offer to buy, the securities or instruments of issuers mentioned. The information has been obtained or derived from sources believed by us to be reliable, but we do not represent that it is accurate, complete, or timely. Any opinions or estimates contained in this information constitute our judgment as of this date and are subject to change without notice. USCGS or its affiliates may provide advice to, be compensated by, or may from time to time acquire, hold or sell a position in the securities of, the issuers mentioned herein. Additional information regarding the issuers mentioned can be obtained from USCGS.
