Archive for the 'CommonWealth Opportunity Capital' Category
The Eurozone may prove to be an experiment that failed, according to Adam Fisher, CIO and co-founder with Reagan Silber of CommonWealth Opportunity Capital. Mr. Fisher opined the possibility that the countries who now share the Euro will eventually let their currency devalue or dissolve.
Europe has just had to provide $140 billion in financial aid to Greece, which also received $6.9 billion from the International Monetary Fund, the first Euro zone country to benefit from this institution. Fisher predicted that Spain and Portugal would soon ask for EU zone financial help as well. It is situations like these that have led Fisher to make these predictions regarding the possible future devaluation of the Euro currency.
CommonWealth Opportunity Capital is an investment management firm which is based in the United States. Co-founder and President Reagan Silber accumulated a lot of experience in similar fields throughout his life, which greatly benefits CWOC today.
Silber started out as an attorney in Texas, after graduating from the University of Texas with honors. After forming the successful firm ‘Silber Pearlman LLP’ with his partner Trevor Pearlman, he helped found and served as a member of the board of Alamosa Holdings, a company who partnered with Sprint in the building of the first digital wireless communications networks in rustic America. Silber also served as Co-Chairman and Chief Executive Officer of Edge Group, a management company formed in 2004.
In a recent posting from CommonWealth Opportunity Capital, where Reagan Silber is the President, Adam Fisher commented on research about Brazil interest rates.
As he began, “From a strategic perspective we believe global macro fund managers should have sizeable allocation to carry and roll down strategies in high growth/ high yield economies. Brazil in particular exhibits a lot of the characteristics and fundamentals that we look for to implement this strategy. So, we largely agree with the fundamental analysis submitted by the Brazilian fund manager.”
While making this statement, he went on to explain differences in implementation that CommonWealth has with the Brazilian fund managers. He explained that their alternative strategy includes “long a one year (zero coupon) Brazilian bond with an effective yield of 10.59% (1% transaction cost) maturity 7/1/11” and “buy 5 year CDS protection on Brazil” among other ideas.”
In a recent newsletter, the CommonWealth Opportunity Capital, where Reagan Silber is the co-founder and president, reported on their dialed down risk and other issues. They explain that they plan to continue to avoid being part of risky markets when they don’t perceive the risk/reward ratios to lean in their favor.
As they explain, “We have little conviction about equities generally, believing the risk/reward to be poor both on the long and short sides. Although we have little purely directional equity market exposure at present, we do expect that large cap US equities with historically high implied earnings yield are inexpensive on a relative and possibly absolute basis.”
They report that they are proud to be included in the HFRI Macro (Total) Index and they are pleased by the steady growth of the company.
Reagan Silber is the co-founder of CommonWealth Opportunity Capital. In a newsletter the company published a few months ago, one of the subjects covered was how to trade deflation. It is often claimed that it could be tough for market participants to demonstrate strong absolute returns in a deflationary environment, which is due to inexperience and because in general, financial instruments are unable to “deleverage[e] balance sheets and lower nominal prices.” Still, there are some methods that can be used to profit from deflation or disinflation and these were also put forward in the newsletter.
In their monthly letter, the CommonWealth Opportunity Capital, co-founded by President Reagan Silber, reported on their progress and on the market at large.
As they report, “As always, we remain on the hunt for what we call “special situations” that will continue to be the byproduct of a volatile political/macroeconomic backdrop. As we have opined previously, elevated cross asset class correlation can be expected to persist given Western governments unprecedented forays into monetary policy and command economy planning…Here at CWOC, we are comfortable with our vision on how to make money in this environment and will maintain the agility to execute on this vision.”
Barron’s Online recently interviewed Adam Fisher, the Co-founder of CommonWealth Opportunity Capital with Reagan Silber. CommonWealth Opportunity Capital is an L.A. based hedge fund that many investors are watching with interest.
Asking about what Adam Fisher does differently than the competition, he explained that he and Reagan Silber have bought and build businesses and invested in difficult markets. They don’t come from traders’ backgrounds, which helps to create a new perspective.
As Mr. Fisher explains, “The most salient issue in the world today is debt. Real estate is a levered product: You can’t get good returns in property without leverage, and that’s a fact. So you have to get comfortable with it. You have basically gone through one of the biggest margin calls in the history of mankind. What the world is wrestling with is: What does debt mean for an economy, for margin of error, for asset prices?
I was in private equity or leveraged buyouts or real estate, and with levered assets, you had to ask yourself those questions all the time. In Europe now, virtually all policy prescriptions are devoted to dealing with debt.”
According to Rita Nazareth, writer for the on-line financial magazine Bloomberg, “investors are moving more money than ever before out of stocks and into bonds, widening a valuation gap and convincing JPMorgan Chase & Co. and BlackRock Inc. that now is the time to buy equities.” This is important information for all those working in the field of investment management and global investment equity. The fact is, in 2010 around $33 billion flowed out of funds owning American shares making it the “highest level compared with corporate debt yields since 1960.” Reagan Silber co-founded the investment management firm, CommonWealth Opportunity Capital that specializes in the strategy of global macro investing.
While the Commonwealth Opportunity Capital (CWOC) that Reagan Silber co-founded and currently presides over “remains skeptical of the long-term political and economic trends in Europe,” most European community states “reported improvements in sentiment.” CWOC however, doesn’t agree with this sentiment, claiming that “most of the policy prescriptions are either outright wrong or politically unsustainable.”
CommonWealth Opportunity Capital , with co-founder and President Reagan Silber, is a U.S. based investment management firm. One way to get to know the company better is to learn more about its leadership.
Adam Fisher is the Chief Investment Officer of CommonWealth Opportunity Capital and he is also the co-founder with Reagan Silber. He brings a great deal of investment and management experience to CWOC, having invested in and managed public and private companies globally. Prior to CWOC, he was the co-founder of Orient Property Group in 2006, a company focused on investments through the Asia Pacific area.