Insights

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.

Sixth Weekly Commentary: COVID-19 Response

April 24th, 2020

Weekly Commentary

Another “End of the Beginning”

 

Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”

Sir Winston Churchill, 1942

After a year of military setbacks and the devastating, nightly bombing of London, British troops had routed Hitler’s forces in Europe and Churchill could finally offer his countrymen the slightest ray of optimistic hope.

Churchill’s quote rings loud and clear today.

For we too may have seen the worst of the pandemic: the overwhelming onset, the awful illness, the daily devastating loss of life, and the wrenching shutdown of the global economy. Just weeks after the initial shock, communities have voluntarily come together, contagion curves have been flattened and medical professionals around the world are already racing to test treatments and discover vaccines.  And, in less than four weeks, stimulus measures amounting to roughly 35% of U.S. GDP have been mobilized to counter the stunning economic impact of the crisis.

While we may indeed be at the end of the beginning, great difficulties certainly lay ahead.  But, just as Churchill saw the outlines of a turning point, we are seeing some signs of stabilization. U.S. equities are 25% off the lows and high yield spreads have compressed 340 bps from the highs. Billions of dollars will be raised to invest in opportunities created by the shock.  HCG’s portfolio – a barometer of the real economy – sees the same.

The Churchill quote at the outset of this piece is notable for its candid assessment of an awful situation. He was never one to sugarcoat a problem, and it was that commitment to honesty and candor that won him the almost complete confidence of the UK’s citizens and buoyed their morale during the darkest days of war.  We aspire to that same level of transparency in our partnership with you.

DISCLAIMERS AND OTHER IMPORTANT INFORMATION
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.