SELECTIVE | DEFENSIVE | OPPORTUNISTIC
WHAT WE DO
Alpenglow Private Capital Provides Select HNW/UHNW Investors and Institutions Simplified Access to an Institutional-Quality Family Office Portfolio Across Public and Private Markets, Anchored by Optimal Alignment of Interests.
Our Mission is to deliver world-class compounding of real portfolio purchasing power through thoughtful and selective multi-asset allocation across the best of public and private markets.
OUR FOCUS
Our most important decision is where we allocate our time and attention. We invest passively in areas where active management has not demonstrated durable alpha net of fees, and concentrate our active efforts where we believe it has.
PUBLIC MARKETS
Given the limited evidence that individual security selection generates sustained net alpha after fees, we focus on asset allocation as the primary driver of public market returns, tactically expressing our views via low-cost passive vehicles.
PRIVATE MARKETS
In private markets, we pursue SELECTIVE, DEFENSIVE, and OPPORTUNISTIC exposure to enhance diversification, generate attractive cash flow, and target superior risk-adjusted returns relative to public markets. This is where we concentrate the majority of our active effort.
The Case for Private Markets
Passive 60/40 - Rise and Limitations
Historical passive 60/40 success was driven by high initial bond yields, compressed initial stock valuations, and early public listings by high-growth tech companies.
These tailwinds have reversed while hyper-scaling startups remain private much longer, thus migrating their most explosive growth phase away from public markets and beyond the reach of passive stock/bond portfolios.
The Shrinking Public Market
The number of U.S. public companies has declined by ~58% since the late 90s. Today, roughly 87% of U.S. companies generating >$100 million in revenue are private.
The S&P 500 has concentrated into larger and more mature businesses while the generational growth opportunities of our era, arguably including the likes of Anthropic, OpenAI, SpaceX, Anduril and Databricks, remain out of reach for everyday investors. It is no wonder why leading endowments, foundations, and family offices now allocate 30-70% of their portfolios to private markets.
Benefits of Private Market Inclusion
Private markets can enhance portfolio performance and diversification while offering asymmetric risk/return profiles and the harvesting of illiquidity premia.
In addition, the structural illiquidity of private investments can be a feature rather than a bug by naturally insulating investors from detrimental behavioral pitfalls that erode performance, while also promoting spending/investing discipline by creating healthy friction between capital and consumption.