As the financial markets remain in a state of unprecedented liquidity and record asset valuation, and the asset management space struggles to find a new identity, managers are being forced to add more value than ever in order to retain the loyalty of even long-standing legacy clientele. In an highly liquid and fully priced asset market simply picking stocks and holding on is no longer a justification for the steep fee structure the industry has become accustomed to, and many of even the most established managers are seeing redemptions in droves. One young asset manager, however, doesn’t appear overly concerned.
Adam Ibrahim, just 28 years old and managing over $90 Million on behalf of institutions and high net-worth individuals, has found a way to get on top of this wave of disruption and better position his clients relative to peers, often through structuring portfolios to embrace uncertainty and, in certain cases, even benefit from it. Employing holistic global asset management strategies that pair strategic hard real estate investments with diversified and actively risk managed market traded portfolios, Ibrahim offers a combination of income, diversity, and growth. Strategies are custom tailored to clients individual risk, return, and liquidity objectives.
Additionally Ibrahim’s New York and Miami based real estate platform, Candor Capital, brings institutional and accredited investors transparent and secure exposure to high-yield multifamily real estate assets in secondary and tertiary markets throughout the Northeast, as well as stable credit retail assets around the country. Additionally, through the use of automation, energy management technology, and durable renovation processes, operating margins are improved, value is unlocked, and management is streamlined.
On the liquid asset management side, Adam Ibrahim and his team developed a strategy he calls 365. According to Ibrahim, “365 is an all-weather strategy. It is not about trying to predict the future, but rather building and maintaining a portfolio of liquid assets that benefit from the widest variety of potential economics outcomes, especially the extreme ones that nobody expects” 365 is able to track gains in most asset markets while mitigating losses in events of extreme economic shocks and disasters. The result is an institutional product that captures market appreciation with less volatility while preserving liquidity for institutions and high net worth individuals during critical periods, such as the current COVID-19 chaos. During the peak of market pressures around the virus, 365’s hedges were able to almost completely offset the mark-to-market losses on core assets through the rapid pullback across nearly all asset classes trading.
When asked about staying ahead of the curve and maintaining client loyalty in an environment of increasing competition and fee compression, Ibrahim did not appear concerned. “There will always be room to add value and thrive for those who are willing to act in the service of others and think creatively. Our services are tailored towards scale investors with specific objectives, for whom even a 1% improvement in risk management or long term growth can really make the difference. We will continue to focus on preserving the interests of our partners and achieving those improvements”
How Adam Ibrahim continued to add value for his clients amidst the peak of COVID-19
