CLOSE

Investing Across Vintages to Weather Volatility

By: Logan Henderson | Published: 12/01/2022
 | 
Est. Reading Time:
2 minutes

“It’s important to stay consistently invested every single vintage year, which means you must think about asset allocation and make sure you know you’re not deploying too much capital today at the expense of tomorrow. Otherwise, you are making a huge bet on market timing.” - President, US-based Single Family Office

The number one driver of returns in private markets is manager selection, which is why we have a highly curated selection of rigorously vetted managers on our platform. As a result, the questions we get are often less about the quality of opportunities and more about where to invest, how much, and when.

Market conditions can impact private investments, and while volatility is not as severe in private markets as in public markets, private markets also go through cycles. Funds of a particular vintage may benefit from investing in a low-valuation environment (current market), while other vintages may have been deploying capital right before a crash (2019-2021 market). Attempting to forecast market conditions over a prolonged period is futile, and success would require exceptional foresight and timing.

As outlined in the quote above, the solution is consistently investing in a well-constructed portfolio diversified by manager, strategy, and vintage. When done well, this strategy becomes a form of dollar cost averaging for private investments that provide a stable return profile in all market conditions. 

Our Thematic Portfolios are built to provide members the ability to construct a scalable investing program with vintage-specific, multi-manager funds, albeit with a fee structure more than 50% below traditional fund of funds. 

Investing in multiple vintages of our Thematic Portfolios gives investors diversified sector and vintage exposure, access to leading private fund managers, and better economics.

-Logan Henderson, Founder and CEO

Worth a Read

Exploring Today's Macroeconomic Parallels to 2001

Investors with a long-term view should heed the lessons of the 2000s. During the "lost decade" for stocks, investors who held on to their public market portfolios saw them lose value in real terms. Read more.

The Upside of Private Market Illiquidity

Private market assets are often seen as riskier because it can take years to cash out. In reality, this illiquidity is a feature, not a bug, which allows investors to hold over market cycles and earn higher returns. Read more.

A Final Thought

Campden Wealth recently released its comprehensive 2022 Family Office Report, a survey where the invested capital of the respondents averages $1 billion. Their top investment priorities are:

  1. Find new deals.
  2. Find alternative investments.
  3. Increase portfolio diversification.

While many investors may not have yet reached the family office classification of wealth, an estimated 13 million US households qualify as accredited investors. Gridline answers these three priorities so that more people can apply the investment strategies of the ultra-wealthy to their own portfolios.

Let us know what you think - please don’t hesitate to reach out.

-The Team at Gridline

Download this article for later.
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque.
Share this Article
Terms of Service | Privacy Policy | GLBA Notice


Disclaimer
This site is operated by Gridline Holdings, LLC ("Gridline"). Gridline does not give investment advice, endorsement, analysis or recommendations with respect to any securities. All securities listed here are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Gridline has not taken any steps to verify the adequacy, accuracy or completeness of any information. Neither Gridline nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy or completeness of any information on this site or the use of information on this site. By accessing this site and any pages thereof, you agree to be bound by the Terms of Service and Privacy Policy

Past performance is not indicative of future results. All securities involve risk and may result in significant losses. Investing in alternative investment funds is inherently risky and illiquid, involves a high degree of risk, and is suitable only for sophisticated and qualified investors. Investors must be able to afford the loss of their entire investment. Alternative investment funds should only be part of an investor’s overall investment portfolio. Further, the alternative investment fund portion of an investor’s portfolio should include a balanced portfolio of different alternative investments. Investments in alternative investment funds are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or limited liquidity. Investments in Alternative investment funds are generally highly illiquid and those investors who cannot hold an investment for the long term should not invest.

Any specific alternative investments funds referenced on this site are included purely for illustrative purposes and selected based on name recognition. Such examples are only partial, and readers should not assume that the investments identified were or will be profitable or are representative of investments by the alternative investment funds identified on this site. There is no guarantee that any alternative investment fund will achieve the same exposure to, or quality of, investments held by any existing fund referenced on this site.

Nothing on this page shall constitute an offer to sell or a solicitation of an offer to buy an interest in any investment partnership or other security. Any offer to sell or solicitation of an offer to buy an interest in an investment partnership may be made only by way of the partnership's final definitive confidential disclosure document and other offering and governance documents of any given fund (collectively, “Offering Documents”). The information on this site is qualified in its entirety and limited by reference to such Offering Documents, and in the event of any inconsistency between this site and such Offering Documents, the Offering Documents shall control. In making an investment decision, investors must rely on their own examination of the offering and the terms of any offering. Investors should not construe the contents of this site as legal, tax, investment or other advice, or a recommendation to purchase or sell any particular security.

The information included in this site is based upon information reasonably available to Gridline. Furthermore, the information included in this site has been obtained from sources Gridline believes to be reliable; however, these sources cannot be guaranteed as to their accuracy or completeness. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information contained herein, and no liability is accepted for the accuracy or completeness of any such information. This site may contain certain “forward-looking statements,” which may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential,” “outlook,” “forecast,” “plan” and other similar terms. All such forward-looking statements are conditional and are subject to various factors, including, without limitation, general and local economic conditions, changing levels of competition within certain industries and markets, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors, any or all of which could cause actual results to differ materially from projected results.

© 2023 Gridline Holdings, LLC