Andrew Elder

Why alternative assets are a good home in a Covid-19 world

We have witnessed another market crash in global stock markets and a highly polarised sectoral response, with significant recovery in some sectors and continued depression in others.

However, alternative assets such as venture capital can be somewhat decoupled from immediate macro influences. This is partly due to the nature of the business models that venture funds look to back. These often involve disruption to traditional models or looking for the opportunity that arises from macro influences negatively impacting traditional models.

In addition, by backing smaller, earlier stage companies, these can be more agile in their responses to negative market influences and find their growth niches more effectively, while larger competitors struggle, locked into their incumbent models.

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