Alternative Investing Report - September 9, 2024

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The number of family offices is expected to top 10,000 worldwide by 2030, up from just over 8,000 now, and from around 6,000 five years ago. Family offices are investment firms that manage the money of a single wealthy family, who generally have more than $100 million in assets. The estimated total assets held by family offices is projected to hit $5.4 trillion by 2030, more than hedge funds are estimated to have by that time.

➨ TAKEAWAY: Family offices invest 46% of their capital into alternative investments, and that number is only expected to grow. Because family offices have longer-term goals than other investment funds, they are uniquely positioned to invest in asset classes that may require longer time-frames, such as venture capital. As the sector continue to grow, the demand for alternative assets will grow with them.

Crypto prices continued to decline over the weekend, with Bitcoin dropping below $54,000, its lowest level in a month, and 27% below its all-time high set in March. The total market cap of the crypto market is down 5% in the last week and only six of the top 50 coins by market cap saw gains in that time.

➨ TAKEAWAY: Bitcoin and the crypto market seems to be more correlated than ever to the stock market, which fell towards the end of the last week, partially due to a below-expectations job report. Investors have reduced their exposure to Bitcoin, with ETFs recording seven straight days of net outflows, totaling over $1 billion. If the enthusiasm for Bitcoin following the introduction of ETFs has diminished, the price could continue dropping.

📖 Shem Tov Bible: Dated to 1312, one of the most significant Hebrew manuscripts is being auction at Sotheby’s on Tuesday with an estimated price tag of $5 million - $7 million.

📊 Weakening jobs market: The Labor Department reported that 142,000 jobs were added in August, up from a post-pandemic low of 89,000 in July, but still below expectations of 160,000. Some economists are now predicting the mediocre numbers could lead to an even bigger rate cut when the Fed meets next week.

🏡 Apartment market stable: Occupancy rates were flat in August and rents rose by 0.4% year-over-year, as multifamily buildings are showing stability, but not any significant growth.

🏀 Wilt Chamberlain record: The only SGC 10 copy of the basketball legend’s 1961-62 Fleer rookie card privately sold for $1.7 million, making it the most valuable vintage basketball card ever.

🚀 Salesforce acquires Own: The data management and security company had raised over $500 million in venture capital and was valued at $3.35 billion in 2021, but the price tag for Salesforce was just $1.9 billion.

📜 Constitution auction: A 1787 copy of the U.S. Constitution is up for auction later this month and has already attracted a $1 million bid. It is one of eight known copies of this version, and the only one not publicly owned.

🎨 Up-and-coming: Sasha Gordon, a 26-year old painter, became the youngest artist to sign with David Zwirner, one of the world’s biggest and most prestigious galleries.

Today: Apple releases new iPhone models with its AI platform, Apple Intelligence.

Tuesday: First presidential debate between Kamala Harris and Donald Trump; Sotheby’s Shem Tov Bible auction.

Wednesday: 9/11 Anniversary; August Consumer Price Index (CPI) and Core CPI.

Thursday: Producer Price Index (PPI) and Core PPI; Heritage Signature Comics Auction, featuring a copy of Fantastic Four #1 that has already received a $1.2 million bid.

Friday: Sotheby’s Epicurean Atlas auction, featuring high-end wines from all around the world, many going in the mid-five figures or more.