Digital finance investing is fundamentally changing the finance industry in the same way e-commerce has disrupted the retail landscape.
We believe that success in digital finance investing requires deep investment expertise as well as technology innovation. Managing private credit opportunities purchased from Internet-based and marketplace lending operators is one example.
Spanning consumer, small business, real estate and other sectors, these operators facilitate access to low balance, short duration credit assets. The granular nature of these assets fosters enhanced transparency that was heretofore not possible.
Low balances can lead to high unit counts and ultimately a high level of diversification, whereas short duration provides for regular liquidity. The two features combine to offer credit portfolios considerable mitigation of idiosyncratic risk. We believe that success in digital finance investing requires deep investment expertise as well as technology innovation.