Vista Tips
Visibility Amidst Uncertainty:
Why More Investors are Turning to Private Equity like Trez Capital
The recent implementation of tariffs has introduced significant volatility and uncertainty into the markets. In late 2024, stronger-than-anticipated economic data spurred a broad market rally, with the S&P 500 achieving a remarkable 24% increase—its most substantial two-year gain since 1998.
However, the beginning of 2025 has been considerably more turbulent, with economic data consistently falling short of expectations. Growth is decelerating, while inflation remains persistently around 3%, complicating the Federal Reserve's efforts to make further progress. Market sentiment regarding inflation remains negative due to tariffs, reduced U.S. taxes, and other inflationary policies. (Article: Consumer sentiment drops as inflation worries escalate).
Forecasting short-term market movements is inherently uncertain. However, given the current noise, sentiment, and volatility, it is prudent to realize some gains and seek safety and stability. This is where alternatives such as the private equity space become valuable, and Trez Capital excels in this arena.
Trez Capital boasts a proven track record, having managed open-ended mandates for nearly 20 years while ensuring stability and capital preservation with consistent and stable income. Since the launch of their first fund in 2006, the NAV has remained stable, distributions have been consistently met, and returns have never been negative. However, there is no guarantee that this will continue in the future and a fulsome discussion of the risk with this fund would be required.
Trez Capital serves as a genuine fixed income alternative, designed to complement rather than replace your existing fixed income strategies. As market volatility increases and the correlation between fixed income and equities rises, Trez Capital provides valuable support. As with all investments, there are some risks involved, for Trez this includes illiquidity and it is subject to fluctuations in the real estate market.
If you are interested in finding out whether Trez Capital is a suitable investment for you, please reach out to our team to discuss.
This e-newsletter has been prepared by David Novak and expresses the opinions of the author and not necessarily those of Raymond James Ltd. (RJL). Statistics, factual data and other information are from sources RJL believes to be reliable, but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. This newsletter is intended for distribution only in those jurisdictions where RJL and the author are registered. This provides links to other Internet sites for the convenience of users. Raymond James Ltd. is not responsible for the availability or content of these external sites, nor does Raymond James Ltd endorse, warrant, or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same privacy policy which Raymond James Ltd adheres to. Securities-related products and services are offered through Raymond James Ltd., member-Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd. (“RJFP”), a subsidiary of Raymond James Ltd., which is not a Member - Canadian Investor Protection Fund.
