Enduring Investments LLC
We prey on inflation before inflation preys on you.
Morristown, New Jersey, US
bonds, commodities, inflation
Investors and corporate risk managers face a bewildering array of inflation problems that have been glossed over while inflation has been low. How does a parent save for spiraling college tuition expenses? How does a corporate Treasurer hedge the company’s exposure to medical benefits it has promised to provide to retirees? How does an insurance company hedge long-term exposures, like Workers’ Compensation, where the future price of providing that compensation is subject to inflation?
The tools they have at their disposal are inadequate to the task. Even inflation-linked bonds, such as TIPS, provide protection only against changes in the headline CPI. So many of these problems fester unaddressed. While inflation has remained low, taking this risk – because by not hedging they are taking a risk that inflation turns out higher than anticipated – has not been painful. But the Federal Reserve and other central banks have added trillions of dollars to the money stock in the days since the financial crisis, and inflation is starting to rise. Median CPI is now at 2.5%, the highest in 7 years, and still rising. And it is not clear that central banks have the tools – or the will – to address the rising inflation.
The solution is available in a company that provides innovative and effective inflation solutions to those who need customized inflation products, or liquid 40-Act structures (like ETFs and mutual funds) that outperform ‘dumb’ alternatives, or even market-neutral products that merely extract excess returns from markets – inflation-linked bonds, and commodities, for example – that are often misunderstood and mispriced in this sort of environment.
Enduring Investments was established seven years ago and has developed significant intellectual property in the form of solutions to these problems. It has developed a large network of potential customers and has launched two products and has negotiated to have a major fund provider launch a third in late 2016.
The current business environment presents a significant business opportunity for a boutique investment management firm of highly-focused and well-credentialed inflation experts, led by a well-known name in the space.
- Investment Management Company with Inflation Specialty
- 7 Years of Intellectual Property Development and Client Cultivation
- Positioned to Deliver Inflation Solutions as Central Banks Fiddle
Inflation is at 7-year highs; investors are uncomfortably aware of exposure to an inflation mishap and Enduring Investments has unique positioning and solutions to offer, including launched products.