We like to tell stories about alternative investments and Fintech as our sector continues to expand. Click below to read our insights on our rapidly changing space. If you have any questions, click here.

Second Weekly Commentary: COVID-19 Response

March 27th, 2020

Weekly Commentary

A trillion here, a trillion there

This week we saw something we haven’t seen in U.S. politics in a long time: bipartisanship.  The Senate passed an unprecedented $2+ trillion CARES-3 (“Coronavirus Aid, Relief, and Economic Security Act”) bill that is expected to pass through the House and be signed quickly by the President.  The bill alone represents about 10% of U.S. GDP.  Total emergency stimulus enacted across agencies, including the Fed, now amounts to more than $3 trillion, and there are rumors of more in the works.

The Economy and Policy 

Key observations this week:

  • The Senate passed the $2 trillion CARES Act to provide additional stimulus to businesses, consumers, and healthcare providers. This follows the Family First Coronavirus Response Act adopted last week.
  • Unemployment spiked to the highest level recorded. Initial claims (NSA) were:
    • Week ending Mar 14: 250,892
    • Week ending Mar 21: 3,283,000
  • The U.S. private sector is pitching in.  Companies continue to announce initiatives to hire, increase wages, and/or create relief funds for workers.
  • China is bouncing back: Real-time indicators of China’s economy are showing a re-emergence from the Covid-induced slump that started about 6 weeks ago. Our hope is that the U.S. and other large economies will show the same resilience with time and cooperation from governments and the private sector.



Over the coming days and weeks, the news cycle – particularly in the U.S. – will be brutal. Collectively, our near-term goal is to shed light on what we are seeing in the economy and how it could impact you and our HCG community.  We are hopeful that from this pandemic, new and exciting opportunities will emerge, and creative solutions will be delivered like never before.

Please be safe, try and stay at home, and know we will emerge stronger.

Confidentiality and Non-solicitation: No information herein constitutes an offer or a solicitation to buy or sell any securities or any interests in any product or investment strategy managed by HCG Fund Management LP (“HCG”).  Any offer or solicitation relating to any such investment will be made only by means of confidential offering documents relating to a particular fund  or investment contract and only in those jurisdictions where permitted by law.
Reliance: This information may not be relied upon for investment decision-making purposes. It does not contain all the information necessary to make an investment decision, including the risks, fees, and investment strategies of investment products advised by HCG. Eligible investors are described in official offering documents, all of which must be read in their entirety and will supersede the information contained herein.  No offer to purchase any securities or interests by a prospective investor will be made prior to receipt of all official documents, and no offer to purchase any securities or interests will be accepted without receipt of all official documentation that has been completed to HCG’s satisfaction.
Opinions — No obligation to update:  The information contained herein represents the views and opinions of HCG.  It is intended solely for informational purposes and is not intended to constitute investment, legal, tax or accounting advice.  The views about digital finance investing and estimated future investment opportunities expressed herein reflect those of HCG management as of the date herein and are a reflection of our best judgment at the time.  They are subject to change based on market and other conditions, and we have no obligation to update.  Actual results, however, may prove to be different from our expectations.  No warranty is given to the completeness or the accuracy of the information contained herein.
Suitability and Risks:  Any investment in products managed by HCG is appropriate only for financially sophisticated investors capable of analyzing and assessing the associated risks fully disclosed in the Private Placement and/or Information Memoranda. Investors should consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The Private Placement and/or Information Memoranda contain this and other information about the investment. A prospective investor should have no need for liquidity with respect to its investment and should view it as long-term and not a trading vehicle.  Additional risks are disclosed in the Private Placement and/or Information Memorandum including, including, limited liquidity and restrictions on transfer of the securities, dependence on HCG’s principals, and short operating history of certain productsAs with all private investment funds, investments are deemed speculative and involve risk of loss.
Third Party Data: We do not verify third party data used in certain calculated metrics shown here.