Alternative Investments

Investing in Real Assets

 

 
 
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Niche Growth market

AVOCADO

The love millennials have for avocados has become the identity of a generation. In fact, the fruit is so important for this generation that UBS considers it one of the eight millennial must-haves among the likes of Netflix, iPhone, Notebook and a cup of coffee.

Millennials are the largest generation in the US workforce . Meanwhile, the popularity of avocado has increased owing to the trends towards healthy eating, coupled with its benefits of healthy fats. For this reason, demand for avocado has skyrocketed worldwide.   

Particularly in the already huge and burgeoning Chinese imported fruit market, the main avocado exporters (Mexico and Chile) have seen their exports grow about 250 percent a year.

As interest for the ‘green gold’ rises worldwide, Mexico the producer of almost half the world’s avocados now has higher net inflows from avocado than petroleum.

Due to the tremendous increase in its demand by the health-conscious middle-class, we believe that the supply may not meet the rising demand over the next 20 years.

Sources: UBS, Pew Research Center, Financial Times, El Financiero, The Brookings Institution

 

GOOD QUALITY AVOCADOS REQUIRE SUBTROPICAL CLIMATIC CONDITIONS

AVOCADOS GROW BEST IN ALTITUDES OF 1500M ABOVE THE SEA LEVEL

AN AVOCADO TREE TAKES ABOUT 15 YEARS TO REACH ITS HIGHEST PRODUCTION POTENTIAL

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A COMPANY REQUIRES CERTIFICATIONS BEFORE GETTING PERMISSION TO EXPORT AVOCADOS. THeSe CAN TAKE MORE THAN 3 YEARS

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AVOCADOS AVAILABLE FOR EXPORT REQUIRE EXCELLENT CONTROL QUALITY AND DECADES OF EXPERIENCE 

 
 
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Avocado Orchards

Return Drivers  


 
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POPULATION GROWTH AND RISING MIDDLE CLASS IN ASIA

By 2030, the global population is estimated and forecast to increase by over 1 billion.

Source: United Nations

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niche Growth Market

China’s demand for the fruit has been explosive and exports from countries like Mexico and Chile are currently experiencing about 250 percent growth rate annually.

Source: Financial Times

 

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Trend Towards Healthy Eating

The growth of products with health-related benefits is out sized. Fruits like avocados and berries belong to this category.

Source: Black Rock

 
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Real Asset Highlights


 

ASymmetric upside potential

We are poised to structure an investment that will drive and provide the highest convexity, so that a high reward can be earned for every unit of risk taken. We see risk in terms of permanent loss of capital, rather than in terms of volatility. We have a conviction that niche growth markets like avocado are viable and superior investment opportunities in a world of limited resources.

Source: Business Insider

Inflation Hedge properties

Preservation of capital is paramount to investing. Real assets provide adequate protection, especially in a world that has been distorted by the printing press of central banks across the world.

Diversifying Source of Return

In terms of investing, there is nothing like free lunch. We provide true diversification from systematic risks. The naive geographical diversification however is not effective when needed the most i.e. when volatility rises and correlations increase.

Superior Cash flows

Cash flows provide downside protection and are relatively a more stable way of determining expected returns.

 
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WHY aSYMMETRICA

We provide access to exclusive investments 

Real assets such as forests, farms, or avocado orchards have been excellent provider of superior returns over time. However, so far, this asset class has only been made available to a few institutional investors like big university endowments, hedge and pension funds.

Our USP is to provide the following characteristics to real assets:

Source:  KKR


 

Accessibility

Small institutions used to find it difficult to access investments in real assets like avocado orchards in Mexico. We come in here and enable exposure to this asset class, ideally by structuring investments for you to become a co-investor with an expert in a niche market.

Lower Minimums

Alternative investments have higher minimum investments than traditional assets. Most times, smaller institutions cannot afford to invest in these types of assets but with distribution ledger technology, we are able to provide lower minimums.

 liquidity

Alternative investments like real assets are illiquid investments. There is no exchange for avocado orchards like for stocks. That is, only investors with a very long time horizons were able to invest in real assets in the past. We therefore seek to improve liquidity by providing a market.

Lower Costs

Naturally, the costs of acquiring and managing real assets are high. As such, smaller institutions cannot afford in-house expertise. We provide a fair reduction in these costs by using economies of scale.

 
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About aSYMMETRICA

Principles 

Asymmetrica Investments AG ("Asymmetrica") is a Swiss holding company headquartered in Zug, Switzerland. The company engages in the consulting services domain, with its core activity being provision of advisory services in the areas of alternative investments and technology.

Asymmetrica is institutionalizing the concept of investing in real assets through the use of technology.


 

Embrace reality

 “Brave men rejoice in adversity, just as brave soldiers triumph in war.”

Lucius Annaeus Seneca

Alignment of incentives

Shared interests lead to shared success. We are rewarded if you have outstanding returns. We are penalized if you have a negative performance. Our remuneration reflects our value added.

Our passion is our work

“If you wish to be a writer, write.”

Epictetus

 

Integrity

“Be crystal clear on what the deal is.”

Ray Dalio

 
Never let the future disturb you. You will meet it, if you have to, with the same weapons of reason which today arm you against the present.
— Marcus Aurelius
 
 
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Our Office

Asymmetrica Investments AG

Gotthardstrasse 26
6300 Zug
Switzerland

+41 78 731 02 08

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