In a recent interview with CanadianSME, Tommy Baltzis, CEO of the investment group WhiteHaven, discussed the value of alternative investments, particularly in a volatile economy. He emphasized the unique, equal opportunities these investments offer to Canadians, and offered strategies to navigate market turbulence. Tommy also highlighted crucial considerations when venturing into alternative investments and suggested platforms and resources for exploring these opportunities. He shed light on trends and factors that could push alternative investments into the mainstream, alongside discussing the importance and potential benefits of these investments in detail.
Tommy Baltzis is CEO of the investment group WhiteHaven, which has locations in Montreal, Toronto, Calgary, Edmonton, and Vancouver. A Canadian alternative investment industry leader with more than 20 years in corporate finance, he has pioneered the democratization of alternative investments to the retail market. Today, WhiteHaven uniquely finances innovative companies and offers exempt market products through registered accounts, with combined assets under a management portfolio of CDN$1.5B. Holding CFA and CPA designations, Baltzis – a graduate of the Montreal-based John Molson School of Business – is a director on the Board of Governors of the Quebec branch of the Investment Funds Institute of Canada (CFIQ), and former Chairman of the Private Capital Markets Association (PCMA).
As a company challenging the status quo of alternative investing, could you explain the benefits of alternative investments, particularly in a shaky economy? How do they provide unique and equal opportunities for Canadians?
Alternative investments are a great way to diversify a portfolio. Traditionally, when we think of investing, we automatically think of stocks and bonds, but there are so many other easily-accessible opportunities out there that most people don’t realize are available. Think investments in startups, restaurant franchises, and private tech, energy, entertainment, and real estate companies, to name a few.
Especially when public markets become volatile, it’s wise for investors to consider more stable investments – such as alternatives – that are resistant to market fluctuations. They can help reduce a portfolio’s exposure and are a great way for every Canadian to get into investing with relatively little commitment.
As an example, WhiteHaven recently helped a unique reality television series, The Fashion Hero, get off the ground by launching an investment fund in which people could invest as little as $500. Since then, the show’s popularity has soared, now streaming on Paramount+ Canada and entering its third season of filming – an exciting time for its investors. While alternative investments do carry risks, they can enhance returns with less market instability.
During times of market uncertainty, how can individuals invest in alternative assets? What strategies or considerations should they keep in mind to navigate market volatility?
Education is key for starters. Investors should understand what alternative investments are, the risks they carry, and how they can work for their financial and portfolio needs. Secondly, it’s important to be patient. When markets are volatile, one’s investment mantra should be “cash is king,” which translates into patience over haste. Alternative investments usually involve a longer-term horizon for returns. This means that investments won’t pay off right away. If you put money into a residential real estate development, for example, you will have to wait until the units are sold before seeing a return on investment. As long as there’s no need for quick access to cash, alternative investments can yield strong returns in the long run and serve as a risk reduction option in a portfolio.
Considering the current economic climate, do you believe now is the right time to invest in alternative investments? What factors should individuals consider when making this decision?
While the current economic climate is an excellent time to consider alternative investments, it’s important to understand that alternative investment avenues are always accessible and offer great potential for portfolio diversification and strong returns no matter what the market conditions.
When making investment decisions, it’s critical to establish clear goals and know your risk tolerance levels from the get-go. Consider if you’re looking for income, diversification, or protection from market volatility. As alternatives carry their own risk, it’s a good idea to start small and gradually increase exposure as you become more experienced and comfortable.
Investors should consider that alternative investments may need expert guidance to determine the best time to invest, review the various complexities of each product and its associated risks, and align the investments with their overall financial strategy. Research investment firms that deal with alternative investments and choose one with a proven track record in the exempt market that offers a variety of alternative investment options. Portfolio managers with expertise in alternative investments can help assess opportunities and make informed decisions.
Where can individuals find alternative investments in the current market? Are there specific platforms, avenues, or resources they should explore to access these opportunities?
Finding alternative investment opportunities is easier than one would think. Once the exclusive domain of institutional investors and the ultra-wealthy, they are now becoming accessible to all investors through various financial institutions and investment platforms. You can find many of these by asking your financial adviser or bank for leads, looking for established financial services firms who operate in this market sector, or seeking guidance from accredited associations such as the Private Capital Markets Association of Canada (PCMA) and Alternative Investment Management Association (AIMA).
These organizations can point to startups and growth-oriented SMEs that are seeking private funding to boost their companies, launch new initiatives, make acquisitions, or upgrade technologies to support their growth. These types of alternative investments not only help launch dynamic entrepreneurial ventures and up-and-coming companies but are also a fantastic way to get your feet wet in this investment space.
Looking ahead, do you foresee alternative investments becoming mainstream in the future? What factors or trends indicate this shift, and how do you anticipate it will impact the investment landscape?
Alternative investments are no longer a trend – they are increasingly becoming mainstream, as investors seek unique, diversified opportunities beyond traditional investment avenues. This paradigm shift is propelled by the opportunities alternative investments offer for customization tailored to individual investment strategies. As they allow for broader diversification and have the potential to deliver substantial long-term returns, alternative investments are becoming a pivotal part of portfolios.
Is there anything else you would like to share about the importance of alternative investments, their potential benefits, or your company’s vision for the future?
Alternative investments are poised to continue to play a pivotal role in portfolio and wealth management. Their potential for high returns and diversification is undeniable. Understanding the value of investors’ life savings, WhiteHaven takes our guidance role very seriously, providing experience and expertise to help investors navigate through the intricacies of alternative investments and ensure their investments align with their financial goals. Our vision for the future involves leveraging technology and innovation to make alternative investments even more accessible, transparent, and beneficial for all Canadians.
