Opportunistic investments are one of the many ways that Greycourt can add value to client relationships. We measure this value for clients by calculating whether the exposure to opportunistic investments added or subtracted from the overall portfolio performance on a risk-adjusted basis.
Each client’s allocation to opportunistic investments will vary based on their unique circumstances. A portion of the portfolio is reserved for these investments that offer a higher return potential (and typically higher risk), exploit dislocation due to a specific event or events (such as over-leverage) and can profit from other investors behaving irrationally. They often exist in smaller, more niche markets.
Examples of past opportunistic investment recommendations include:
- Buying tax-free inflation protection effectively at no cost
- Purchasing high quality core real estate from distressed investors at deep discounts
- Purchasing private equity LP interests at a discount in the secondary market