Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more
This site is for accredited investors, professional investors, investment managers and financial professionals only.
You should have assets around $3 million to $300 million or managing $20 million to $30 billion.
Why Access to Global Economic and Investment Opportunities is Never Equal for Everyone
Many clients rely on good-old investment philosophy such as Value-Investing or Fundamental Analysis. Some clients who are keen on price movements, charting and patterns, may employ the use of technical analysis.
For wealth & investment professionals, such as traditional Fund Managers and Chief Investment Officers, they rely heavily on Modern Portfolio Theory.
Given the popularity and evidential-effectiveness of Value-Investing, Fundamental analysis, and Modern Portfolio Theory, shouldn’t clients, wealth & investment professionals be doing better or at least matching the benchmark easily?
- Article continues below -
Quick Links, Ads & Announcements
Caproasia Access | Events | Summits | Register Events | The Financial Centre
The 2024 Investment Day | 2024 Family Office Summits | Family Office Circle
Sign Up
Basic Member: $5 Monthly | $60 Yearly
Newsletter Daily 2 pm (Promo): $20 Monthly | $180 Yearly (FP: $680)
The 2025 Investment Day
Hong Kong | Singapore
March / July / Sept / Oct / Nov
Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Join 20+ CIOs & Senior investment team, with > 60% single family offices with $300 million AUM. Taking place in Hong Kong and in Singapore. Every March, July, Sept, Oct & Nov.
Visit | Register here
The 2025 Family Office Summit10th April & 16th Oct Hong Kong St Regis | 17th April & 6th Nov Singapore Amara Sanctuary Resort
Join 80 single family offices & family office professionals in Hong Kong & Singapore
Links: 2025 Family Office Summit | Register here
2025 Investment / Alternatives Summit
March / Oct / Nov in Hong Kong & Singapore
Join leading asset managers, hedge funds, boutique funds, private equity, venture capital & real estate firms in Hong Kong, Singapore & Asia-Pacific at the Investment / Alternatives Summit. Join as delegate, speaker, presenter, partner & sponsor.
Visit | Register here
2025 Private Wealth Summit
April / Oct / Nov in Hong Kong & Singapore
Join CEOs, CIOs, Head of Private Banking, Head of Family Offices & Product Heads at The Private Wealth Summit. Join as delegate, speaker, presenter, partner & sponsor.
Visit | Register here
Or is the Efficient Market Hypothesis proving right that one can’t beat the market? Or do Hedge Fund Managers know something that everyone else doesn’t?
Or perhaps, access to global economic and investment opportunities is not equal for everyone?
Read More:
- What is Value-Investing?
- What is Fundamental Analysis?
- What is Efficient Market Hypothesis?
- What is Modern Portfolio Theory?
No. 1 The Efficient Market Hypothesis in Question
The Efficient Market Hypothesis states that it is not possible to beat the market because all relevant news & information are already known, and that the price is already reflected in the market.
As beauty lies in the eyes of beholders, everyone’s perception of a fair valuation or price of an investment is different. This means ideally if all rational and irrationally investors participate in the price discovery, with the ensuing market reflecting the price, the price should vary widely, instead of around a single price (+/-).
Why is it Not Equal for Everyone: Ignorance or Simply Lazy – The theory didn’t state if all investors and professionals are avid readers of the relevant news. The theory also ignore if everyone have access to the tools, having the required knowledge to use the tools correctly, and the accessibility to the investments. Eg, we may be sleeping when something happens.
No. 2 The Fallacy of Great Investment Opportunities to Everyone
Should great investment opportunities be shared with the laziest person or the richest person? Or should it be made publicly available so that everyone has the opportunity to review the investment opportunity?
Why is it Not Equal for Everyone: The people (business owners / consultants / financial advisors / investment bankers) who put up the investment proposals would probably go to the investors willing to pay the most money with the least information & disclosure required – Not to the ones that ask questions such as what is the forward P/E, FCV, NPV and NAV. (We deliberately omit the explanation of the abbreviations to be on the side of 95% or more of population / investors who have no idea what these means).
Or perhaps they decided to market to small investors instead? It is all subject to the strategy of the business owners and the investment brokers.
No. 3 The Perspective of Rate of Return
To someone in United States, Western Europe, Hong Kong or Singapore, they would be fairly happy with a return of 5% (if nominal interest rate is 3% and inflation is 2%).
While in Indonesia, China & India, their central bank rates are at 6.75%*, 6.5%*, 4.35%*. This means their domestic yield on bonds and deposits could be ranging from 5% to 10%.
* Central Bank Rates on 1st May 2016
Would a 5% return in global equities or diversified portfolio justify their risk-taking or investment returns in different countries?
Why is it Not Equal for Everyone: An investor in a developed country is used to having information and accessing risks and returns. An investor in an emerging country is prepared to take on excessive risks since they have less to lose. There may also be restricted access to global investment opportunities such as foreigners’ restrictions, availability of stock / bonds exchange, price & volume efficiency, access to brokers, capital controls on money flow and exchange rates fluctuation.
No. 4 Dealing with Money Flow
Most investors, wealth & investment professionals place significant emphasis on reviewing capital controls and exchange rate fluctuations. No one would place $100 Million portfolio in a country that may suddenly cease all outflow of capital or the currency depreciating or appreciating +/- 30% frequently.
Why is it Not Equal for Everyone: Most will shy away from such investment opportunities due to money flow problems. Since the risk is high, the returns potentially could be high too. To structure the investments and to build risk-mechanisms, the professionals uses synthetic structures such as Synthetic Exchange-Traded-Funds and derivatives such as forwards, futures and swaps. More sophisticated transactions such as asset structuring can also be done. Such transactions are common in Investment Banking, Private Banking and Private Equity. In other words, if you are a client of these financial services, you may have access to such opportunities. It also means if the deal is structured badly, you could lose some money too.
No. 5 Transactional & Executional Expertise
Once a great idea is spotted, we look for financial instruments to access and execute the opportunities. With a complex global economy and financial system, it is not an easy job to find the ideal financial institution to transact and execute the investment.
Why is it Not Equal for Everyone: Most people just can’t afford to pay premium prices for quality transactions. The professionals who have the expertise will simply serve clients who have larger and larger assets. But it doesn’t means paying for the best professionals get things done all the time –
Examples that doesn’t look too good:
- The world’s dumbest bank transferred €300 Million to Lehman
- Investor sue DBS over options
- Dinner with Goldman Sachs cost him $34 Million
- MF Global Account leaves clients scrambling
- Barclays fined for £72m over running the risk of laundering money or finance terrorism
No. 6 Safety in numbers. The Herd Mentality
Everyone loves the the feeling of warm and comfort everyday. And when you are wrong, at least you are not the only one. But when you are right, neither are you the only one. There are likely thousands if not millions.
Do you know your numbers:
- The World’s Population
- The Number of Investors in Apple Inc
- The Number Investors in Alibaba Inc
- The Number Banks in United States
- The Number of Banks in the World
- The Number of CFA Holders
Why is it Not Equal for Everyone: While most investors would be happy with 5% or 10% returns, there are a small group of investors who consistently capture 25%, 50% and 100%. Why would there be such a vast difference in returns?
The two groups of investors clearly have a different opinion of risks and returns. If more investors are aware of the methodology to generate 25%, 50% and 100% returns, would the returns diminish then? Or maybe one day, they might lose it all. For most investors, generating reasonable or more returns and losing less are key priorities. And because most investors continue to think these way, investment opportunities rarely come their way.
No. 7 Does Good Investment Opportunities Exists?
Or perhaps there are no such things as good investment opportunities. You can discover a goldmine just right under the land you are standing on. But if you don’t have the knowledge and skills to mine the gold, you can’t make money out of it in your lifetime. If you don’t have the skills to classify the gold, your gold piece might end up on a computer chip and not on a royal family jewels’ collection.
Why is it Not Equal for Everyone: A good and bad investment opportunity is subjective. Whenever an investment go sour, most call it a terrible investment. More blame it on a lack of study and research. But somewhere in the world, a few wealth & investment professionals make money out of these “terrible investments.” They may call that distressed assets. Some facilitates the liquidation such as in a bankruptcy auction.
These are 7 reasons why economic & investment opportunities are never equal.
And if access to global economic and investment opportunities are equal, wouldn’t everyone be taking the same risks and same returns? Would that be communism or “equal-capitalism”?
Related Articles:
- 3 Reasons Why Good Investment Idea may be a Bad Idea
- 8 Reasons why Clients prefer to place Money in Deposits than Investments
- Restricted: The Fundamental Flaw in Allocating Assets and Reviewing Investment Opportunities
Related Articles:
- Why more than 50% of Private Bankers quit in 21 months?
- How do you survive as a Private Banker?
- How do you succeed as a Private Banker?
- How do you find the right Private Bank?
- How do Private Bankers get new clients?
Managing $20 million to $3 billion. Investing $3 million to $300 million.
For Investment Managers, Hedge Funds, Boutique Funds, Private Equity, Venture Capital, Professional Investors, Family Offices, Private Bankers & Advisors, sign up today. Subscribe to Caproasia and receive the latest news, data, insights & reports, events & programs daily at 2 pm.
Join Events & Find Services
Join Investments, Private Wealth, Family Office events in Hong Kong, Singapore, Asia-wide. Find hard-to-find $3 million to $300 million financial & investment services at The Financial Centre | TFC. Find financial, investment, private wealth, family office, real estate, luxury investments, citizenship, law firms & more. List hard-to-find financial & private wealth services.
Have a product launch? Promote a product or service? List your service at The Financial Centre | TFC. Join interviews & editorial and be featured on Caproasia.com or join Investments, Private Wealth, Family Office events. Contact us at [email protected] or [email protected]
Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets?
Quick Links
Caproasia Access | Events | Summits | Register Events | The Financial Centre
The 2025 Investment Day | 2025 Family Office Summits | Family Office Circle
2021 Data Release
2020 List of Private Banks in Hong Kong2020 List of Private Banks in Singapore
2020 Top 10 Largest Family Office2020 Top 10 Largest Multi-Family Offices2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM
For Investors | Professionals | Executives
Latest data, reports, insights, news, events & programs
Everyday at 2 pm
Direct to your inbox
Save 2 to 8 hours per week. Organised for success
Register Below
For CEOs, Heads, Senior Management, Market Heads, Desk Heads, Financial Professionals, Investment Managers, Asset Managers, Fund Managers, Hedge Funds, Boutique Funds, Analysts, Advisors, Wealth Managers, Private Bankers, Family Offices, Investment Bankers, Private Equity, Institutional Investors, Professional Investors
Get Ahead in 60 Seconds. Join 10,000 +
Save 2 to 8 hours weekly. Organised for Success.
Sign Up / Register
Web links may be disabled on mobile for security. Please click on desktop.
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- July 2024 - Hong Kong
- July 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Oct 2024 - Hong Kong
- Nov 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
Contact Us
For Enquiries, Membership [email protected], [email protected] For Listing, Subscription [email protected], [email protected] For Press Release, send to: [email protected] For Events & Webinars [email protected] For Media Kit, Advertising, Sponsorships, Partnerships [email protected] For Research, Data, Surveys, Reports [email protected] For General Enquiries [email protected]Caproasia | Driving the future of Asia
a financial information technology co.
since 2014
