Last week, the investment team at Drum Hill Capital attended Stocktoberfest East in New York City. Hosted by Howard Lindzon of StockTwits, Stockberfest is described as an event where CEOs, traders, and investors get together to discuss trends, global macro opportunities, and other strategies. With over 500 people in attendance and lead speakers like Fred Wilson of Union Square Ventures, the event definitely lived up to its description.
One interesting divergence this year from years’ past was a shift away from publicly traded equity and more into private ventures. However, the fascination with private markets and innovative technology enabled ventures did not come as a surprise to the attendees. In fact one remarked, “private markets are the new public.” For suitable investors, private market investments offer a unique return profile, but with the caveat that the risk/reward nature of public equities should still have a place within virtually all portfolios.
Another takeaway was Howard Lindzon’s encouragement to investors to step outside of their comfort zone and consider some of the trending industries like robotics, bitcoin, cloud storage, and artificial intelligence. Lindzon believes that these trends along with a few others will drive global economic growth among Millennials because younger people are becoming more and more interested about investing.
Stocktoberfest was a great forum to discuss the ongoing trends within capital markets, with most speakers being positive about the state of the global economy. Though it is impossible to know how these trends will develop, everyone should be mindful of their presence. Time and economics will ultimately tell whether or not private markets are the new public markets; however it is still very exciting to see the innovation being demonstrated by entrepreneurs and investors today.