Our assets are still a fraction of those managed by some of the bigger investment firms. But we have studied how the best of those partnerships operate, and put in place systems like theirs where, if you do something valuable, then you can progress up the ladder. So far, those institutionalizing measures have worked well. It’s because of them that we’ve managed to take the firm from being totally Greater China focused when it launched to being a global business with highly diversified Asia-Pacific operations today.
Our first phase – what we now refer to as Gaw 1.0 – was centered largely on single-asset deals. In Gaw 2.0, starting around 10 years ago, we moved into thematic platform investing, first developing retail outlet malls and entertainment complexes with a European partner, then adding logistics developments, internet and data centers, hospitality, and other commercial real-estate related developments.
Those schemes laid the foundations for Gaw 3.0 – taking thematic platform building a step further to set up businesses which combine a real estate arm with another business that owns and operates revenue-generating businesses within the industry – so-called “operating company/property company (opco/propco)” deals.
In 2021, Gaw Capital completed the final close of our first commingled growth equity fund, Gaw Growth Equity Fund I, which targets investing in prop-tech (property technology) and real-estate operating companies that are high growth and highly scalable with a primary focus on Asia. We have been embracing prop-tech investment by not only deploying capital, but also offering our in-depth expertise in management and global presence to help these real estate technology companies grow and thrive.
This has opened the way for us to develop and run businesses such as renewable energy battery storage facilities and to supplement our real estate expertise with prop-tech businesses that extend our reach into new economy property investment, management, and marketing platforms.
We’ve changed a lot over the years. We started off looking for investors asset by asset as we discovered one real estate opportunity after another. Now we’re always looking for ways of assembling collections of assets that can always be further expanded as new investors come on board.
Of course, we still like to take advantage of single-asset opportunities when we spot them, but we focus a lot more of our senior management time on how we should be building these thematic platforms because of their huge scalability potential. This approach seems to be working. Institutionalizing our business allowed us to increase our assets under management to $12 billion five years ago. The steps we’ve taken since then have seen that total rise to more than $34 billion.
Looking ahead
Today, the challenge is maintaining and growing our position in what looks certain to be a tougher business environment in the coming few years.
On Hong Kong, our home, we are optimists. It’s survived tough times in the past – the riots of 1967, the immigration wave in the late 1980s ahead of the 1997 handover – and today investors are concerned about the direction China is taking.
But we think China will continue to maintain Hong Kong’s separate position under the “One Country, Two Systems” principle. From everything we hear, Hong Kong will retain its position as China’s main window to the rest of the world up to and beyond 2047, the year when Beijing will have to decide whether to renew the current system under which Hong Kong is run.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
