In this episode of the Wealth Management Investing Podcast, Wealth Management Network David Bodamer contributed to research along with Tony Davidow, senior alternatives investment strategist at the Franklin Templeton Institute. With over 35 years of industry experience, Tony shares insights on the growing popularity of alternative strategies and the role of private credit, private equity and real estate in a diversified portfolio. He emphasized the importance of education for alternative investment advisers, the need for operational efficiency and the need to work with institutional quality managers to navigate this complex but rewarding investment world.
Tony specializes in:
- How interval funds and tender offers are revolutionizing access to alternative investments for a wider range of investors
- 60/40 The importance of diversification in a portfolio strategy and the need for alternative investments in today’s market environment
- How private equity, private credit and private real estate can hedge market risks and enhance portfolio diversification
- Why the institutional quality of asset managers is critical to ensuring successful investing in alternative asset classes
- and more
Contact Tony Davido:
Contact David Bodamer:
About our guests:
As an investment strategist at the Franklin Templeton Institute, Tony Davidow is responsible for developing and communicating Franklin Templeton’s investment strategies through independent research, participation in industry conferences and webinars, and direct engagement with key partners and clients. Putten Institute insights on using alternative investments. Prior to his current role, Mr. Davidow held senior leadership positions at Morgan Stanley, Guggenheim and Schwab. Davidow began his career working in a family office in New York and worked directly with many institutions and ultra-high net worth families over the years. He is a frequent author and speaker and has deep expertise in the use of alternative investments, asset allocation, portfolio construction, and goal-based investing.
Mr. Davidow was awarded the prestigious Investment and Wealth Institute Wealth Management Impact Award in 2020 for his contributions to the wealth management industry; he was the recipient of the Stephen L. Kessler Writing Award in 2017 and an honorary title in 2015 .
Reveal:
This material reflects the speaker’s analysis and opinions as of March 4, 2024, and may differ from the views of Franklin Templeton’s portfolio managers, investment team or platform. It is intended for general interest only and should not be construed as personal investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.
The views expressed are those of the speaker, and reviews, opinions, and analyzes are as of the date of this podcast and are subject to change without notice. The information provided in this material is not a complete analysis of every material fact for any country, region, market, industry, security or strategy. Statements of fact are obtained from sources believed to be reliable, but no representation or warranty is made as to their completeness or accuracy.
What are the risks?
All investments involve risks, including possible loss of principal. The value of investments can fall as well as rise and investors may not get back the full amount invested.
Investing in many alternative investment strategies is complex and speculative, carries significant risks, and should not be considered a complete investment plan. Depending on the products invested, investments in alternative strategies may provide only limited liquidity and are only suitable for those who can afford to lose their entire investment. An investment strategy focused primarily on private companies poses certain challenges and involves incremental risks compared to investing in public companies, such as dealing with the lack of information available and the general lack of liquidity of these companies. Diversification does not guarantee a profit or protect against a loss.
Risks of real estate investing include, but are not limited to, fluctuations in rental occupancy and operating expenses, changes in rental schedules, which in turn may be adversely affected by local, state, national or international economic conditions. These conditions may be affected by real estate supply and demand, zoning laws, rent control laws, real estate taxes, the availability and cost of financing, and environmental laws. In addition, real estate investments are also affected by market disruptions caused by regional concerns, political unrest, sovereign debt crises, and uninsured losses (often from catastrophic events such as earthquakes, floods, and wars). Investments in real estate-related securities, such as asset-backed or mortgage-backed securities, are subject to prepayment and rollover risks.
Investments in private securities (such as private equity or private credit) or vehicles investing in these securities should be considered illiquid and may require long-term commitments with uncertain returns. The value and returns of such investments will vary due to changes in factors such as market interest rates, general economic conditions, economic conditions in specific industries, financial market conditions and the financial condition of the issuer of the investments. There is also no assurance that a company will list its securities on a stock exchange, and therefore the lack of an established, liquid secondary market for certain investments may adversely affect the market value of those investments and the ability of investors to do so. Dispose of them at a favorable time or price. Past performance is no guarantee of future results.
Data from third party sources may have been used in the preparation of this material and Franklin Templeton (“FT”) has not independently verified, verified or audited such data. The Financial Times accepts no responsibility for any loss arising from the use of this information and reliance on the comments, opinions and analysis contained in the material is at the user’s discretion.
