Hello and welcome to Alts Cafe
We’ve got a big announcement coming out later today. Keep an eye on your inbox.
In other news, I was in Mexico last week doing due diligence for an Altea deal and spotted a couple new opportunities. Check out the write-up.
Highlights from the full issue:
- Macro: The Nasdaq Composite reached a new record high
- Real Estate: The median home sales price grew 5.7% in April
- Startups: NYC startups raised $494 million in new funding
- Private Credit: CIOs’ value has risen in PE
- Crypto: The House passed the FIT21 Act
- NFTs: Rabbit AI was accused of a $6 million NFT scam
- Art: Sotheby’s issued a $700 million art-backed debt security
- Vintage Autos: 007 Aston Martin could sell for £500,000
- Coins: A metal detector enthusiast found a coin worth $5,760
- Farmland: New Jersey preserved 566 acres of farmland
- Luxury: Louis Vuitton was named fastest selling brand
- Wine, Tequila, and Spirits: Cocktail Courier acquired Thirstie
- Film & Music: Da Showstoppaz sued Beyoncé, Jay Z, & Sony
- Precious Metals: Gold and silver hit fresh 2024 highs
- Collectibles: Babe Ruth’s “called shot” jersey is up for auction
- Websites: Humanity Pro. bought humanity.org for $225,000
Let’s go.
Wyatt
Table of Contents
Macro View
Bullish News
- The Nasdaq Composite reached a new record high on Friday of 16,920.8.
- Wall Street’s biggest bear, Mike Wilson, turned bullish, expecting the S&P 500 to rise 1.5% over the next year.
- Brent crude oil recorded its first weekly gain in three weeks.
- Europe’s outlook improved as data showed the eurozone grew by 0.3% in Q1.
- On Tuesday, Fed Governor Christopher Waller said he sees “some progress” on inflation, but no rate hike is needed.
- Over half of Americans believe the US is currently in a recession despite the economy being in good shape.
- Singapore’s economy grew 2.7% year-on-year in Q1 2024, the quickest pace in 18 months.
Bearish News
- Goldman Sachs CEO David Solomon said he does not expect the Federal Reserve to cut interest rates this year.
- On Friday, Treasury Secretary Janet Yellen said that many Americans are still struggling with inflation.
- California faces opposition for a fiscal maneuver to cope with a massive budget deficit.
- HSBC was fined £6.2 million for unfair treatment of financially stressed customers, risking harm to 1.5 million people.
- Moody’s downgraded Colombian energy company Ecopetrol to junk status, citing increased indebtedness.
- Mortgage interest rates have surged, increasing typical payments by over 60% since mid-2022.
What are the odds?
The odds of multiple rate cuts coming in 2024 are slowing bleeding down.
Get $25 to play around with using this link.
What are we doing?
Altea Highlights
Check out the full roundup.
Live Deals
Alts 1
- Minimum Investment: $20k
- Duration: 10 years (8 to go)
- Target IRR: 20%
- Investment Type: Reg D fund, alternative assets.
What’s the deal
This is our own fund, so please note the obvious bias.
Alts 1 represents a pioneering venture into alternative investments, seeking to capitalize on unconventional assets historically outperforming traditional market instruments. The fund, led by a team with a blend of military, financial, and technological expertise, positions itself as a dynamic entity agile enough to exploit market inefficiencies across a broad spectrum of alternative assets, including art, crypto, tequila, and more niche ventures like sports cards and distressed music rights.
Funding Status: $500k
What’s changed?
We did a Q&A last week. Have a watch if you’d like to learn more.
Investor Field Trips
We’ve locked in Nashville 🎸 for a music-themed investing adventure to Music City, USA.
Get your boots spit-shined and your guitar tuned.
Est. dates: October 21 – 25
We’ll discount the first few members who make a deposit. Let me know if you’d like to join.
Real Estate
Bullish News
- The median existing-home sales price grew 5.7% to $407,600 in April, a record high for the month.
- Manhattan’s median asking price reached a new peak of $1.1 million in March 2024.
- Denver Metro’s median close price ascended by 3.48% to $595,000 in March 2024.
- Zillow released its open-source Fair Housing Classifier to promote unbiased AI in real estate conversations.
- The Memphis Area Association of Realtors reported an 18.4% jump in home sales in April 2024 compared to last year.
- San Francisco’s Jackson Square’s real estate prices have reached a 10-year high.
- Realty Income Corp raised its monthly dividend by 2.1% in May 2024.
Bearish News
- Existing home sales fell 1.9% in April, hindered by mortgage rates above 7%.
- Florida cities saw some of the largest declines in down payments, with Ocala falling more than 51% in Q1 2024.
- The NAR lawsuit settlement has confused Seattle’s market, with commissions expected to drop to 1%-1.5% per agent.
- High mortgage rates above 7% have frozen the market, leaving the country 4.5 million homes short.
- Oakland’s median asking rent has tumbled since the pandemic began, falling 10% in the past year alone.
- Investors alleged Atlanta advisor Jay Morrison scammed them through his $11.7 million Tulsa Real Estate Fund, showing no return.
How to invest in real estate right now:
There’s a sexy opportunity brewing in Mexico right now. Read my write-up.
Startups
Bullish News
- HobbyDB is raising a Crowdfunding round.
- NYC startups raised $494 million in new funding across 14 deals for the week ending 5/18/24.
- Biotech and healthcare startups have secured $5.6 billion in 110 Series A rounds in 2024, 53% of total Series A funding.
- Virginia Innovation Partnership Corp. announced they will invest $100 million in 100 Virginia startups with seven venture capital funds over 3-5 years.
- Crypto startup funding rose to $2.4 billion in Q1 2024, a 40.3% increase from the previous quarter.
- Elon Musk’s AI startup xAI has secured new backing from Andreessen Horowitz, Lightspeed Venture Partners, Sequoia Capital, and Tribe Capital.
- AI defense tech startup Helsing is raising at least $400 million in a Series C round led by General Catalyst.
Bearish News
- Defense tech funding dropped to $118 million in Q1, a 74% decline from the previous year.
- A DoorDash delivery driver was critically injured in a hit-and-run accident in Waco, Texas.
- Haltia AI warned that California’s new AI bill will “cripple innovation with overly burdensome regulations.”
- Rivian lost $38,784 per vehicle delivered in Q1, reporting a 3% decline in deliveries compared to Q4 2023.
- Techstars CEO Maëlle Gavet has left after a failed $80 million JPMorgan deal and a $7 million loss in 2023.
- Peloton announced a global refinancing with $275 million in convertible notes and a $1 billion term loan facility.
How to invest in startups right now:
Pack your bags. We’re moving to Virginia.
Private Equity and Private Credit
Bullish News
- PE funds made up 52.9% of the $295.0 billion in capital raised across all private market asset classes in Q1 2024.
- CIOs’ value has risen in PE as investors see digital transformation and AI as key advantages.
- Carlyle Group raised $2.8 billion, nearly 70% more than its previous fund, for its largest Japan buyout fund.
- NFL commissioner Roger Goodell said the NFL is making “real progress” on possibly allowing PE firms to invest in NFL franchises.
- Blue Owl supported PE firms, closing 600 loans worth $100 billion since 2016, growing to $200 billion in AUM.
Bearish News
- Top PE leveraged buyout funds have barely outperformed the stock market, with half of 7-9 year old funds’ assets in unsold deals.
- The FTC’s antitrust case against US Anesthesia Partners will continue despite the dismissal of its PE owner Welsh Carson.
- Fidelity International scrapped plans to build in-house European direct lending and infrastructure businesses.
- UBS is laying off 51 employees at its Weehawken office due to tightening budgets in NJ’s finance sector.
How to invest in PE and Private Credit right now:
CIO’s doubling down on PE.
Crypto
Bullish News
- The House passed the Financial Innovation and Technology for the 21st Century Act (FIT21) with a vote of 279-136.
- Ethereum spiked after Bloomberg analysts increased the odds of the SEC approving VanEck’s spot Ethereum ETF application to 75%.
- The Biden administration’s stance on crypto is softening, signaling a more favorable regulatory environment.
- Coinbase launched the Tech Against Scams coalition with Match Group, Meta, and others to combat scams.
- Crypto trading and lending firm VersiFi acquired Ather Digital, a crypto trading technology startup.
- The amount of crypto deposited on Aave hit a two-year high of $19.5 billion on Wednesday.
- Bitmain-backed cloud mining company BitFuFu’s Q1 revenue soared 150% to $144.4 million compared to Q1 2023.
- DeFi is making a strong comeback, with Q1 TVL growing by 70% to cross $175 billion.
- Ripple Labs filed a trademark for “RLUSD,” hinting at the launch of a dollar-backed stablecoin.
Bearish News
- Cryptocurrency spot trading volume fell 32.6% in April, its first drop in seven months.
- Kabosu, the Shiba Inu dog who inspired Dogecoin and the “doge” meme, died at age 18.
- The US Supreme Court ruled against Coinbase in a dispute over arbitration agreements.
- Yuga Labs faced backlash over a new Punk-themed NFT collection and said it will “no longer touch” CryptoPunks.
- Over $22 million in cryptocurrency was stolen from blockchain gaming platform Gala Games.
- Bankrupt crypto lender Genesis announced he will pay $2 billion to defrauded investors in a settlement with New York prosecutors.
- Crypto exchange Nexo suddenly raised bank transfer fees, sparking user outrage.
How to invest in Crypto right now:
RIP Kabosu
NFTs
Bullish News
- Guild of Guardians Avatars surged to second place on the NFT sales leaderboard with $825,172 in daily sales.
- Milady Maker’s floor price surged 35% to an impressive $21,000 on Tuesday.
- Luxury car marketplace Dreamcars has launched, allowing fractional ownership of cars as NFTs on the blockchain.
- BlockDAG’s presale hit $31.4 million on Friday, outshining Solana NFTs and Cardano’s bearish trends.
- OpenSea launched “Get Based,” a series of digital art NFT drops on the Ethereum Layer-2 scaling network, Base.
- basedVC and BAYC have launched APES Capital, a new venture capital initiative deploying over $40 million in 20+ web3 projects.
Bearish News
- NFT artist Claire Silver expressed concerns that reducing or eliminating royalties deters artist involvement, leading to a less dynamic NFT industry.
- YouTube investigator Coffeezilla accused Rabbit AI of orchestrating a $6 million NFT scam with their Gama project.
How to invest in NFTs right now:
Why buy a car when you can buy a digital fraction of one on your computer?
Artwork
Bullish News
- Sotheby’s issued a $700 million art-backed debt security, backed by $1.4 billion in art equity loans.
- The Orlando Museum of Art received a $1.8 million bequest from artist Margaret Young and is asking a court to modify the restrictions on its use.
- According to Deloitte’s Art & Finance Report, half of young investors see art investment as a “safe haven” during uncertain economic times.
- Sotheby’s global chairman Brooke Lampley, who helped secure marquee consignments, will join Gagosian as Senior Director this fall.
- Cosmetics investor and mega collector Ron Perelman sold $963.3 million worth of art by 25 artists to pay down debt.
Bearish News
- Damien Hirst was exposed as a (n alleged) fraud, with thousands of works dated to 2016 actually made years later.
- Brooke Lampley, key to Sotheby’s record-breaking sales like the $922.2 million Macklowe collection, is leaving to join the Gagosian gallery.
- A new Banksy mural in London was vandalized and fenced off just days after appearing.
How to invest in Artwork right now:
Isn’t Banksy technically vandalizing already?
Vintage Autos
Bullish News
- An iconic 1964 Aston Martin DB5, the same model from James Bond films, is expected to fetch £500,000 at auction.
- According to Hagerty’s CEO, the McLaren F1 could be the next holy-grail car from a collectibility standpoint.
- Club Bugatti France organized a tour from Molsheim to Lyon to celebrate the 100th anniversary of the Type 35.
- A rare 1965 Aston Martin DB5 Convertible, one of 123, could fetch $1.3 million at auction after an £80,000 restoration in 2016.
Bearish News
- The average cost to ship a car ranges from $550 to $2,450, with enclosed carrier shipping averaging $1,000 to $2,450.
- An 80-year-old Oakland man’s prized 1959 Corvette worth $200,000 was stolen from his garage.
- A man crashed a vintage hot rod into the Waterloo Public Library minutes after purchasing it at an auction.
- Musician and television host, “Cadillac Bill,” had his classic 1989 Cadillac stolen from a lot on Tuesday night.
How to invest in Vintage Autos right now:
He just goes by “Bill” now.
Rare Coins
Bullish News
- An 1863 $10 gold coin, Judd-349, PF-64 Cameo, PCGS, CAC, sold for a record $810,000 at Heritage’s CSNS auction.
- A ‘Petition Crown’ of Charles II sold for a world record $1 million, becoming the most expensive British silver coin sold at auction.
- The 1799 Draped Bust Cent commands premium prices, with a Poor 01 1799/8 variety selling for $1,320.
- A metal detector enthusiast found a 1907 Barber dime on a 200-year-old property. This coin can sell for $5,760 at auction.
Bearish News
- An Indian scammer pleaded guilty to stealing over $37 million by spoofing Coinbase’s website.
- The Royal Canadian Mint reported a 7% decline in numismatic coin sales in Q1 2024.
How to invest in Rare Coins right now:
I’m never making fun of metal detector enthusiasts again.
Farmland
Bullish News
- The Organic Trade Association celebrated a 3.4% increase in organic sales in 2023.
- New Jersey completed a $27.2 million purchase of a 566-acre parcel to preserve farmland.
- The US House Agriculture Committee released the draft of the $1.5 trillion farm bill, the first trillion-dollar farm bill ever.
- Organic Valley, the largest US organic farmers’ cooperative, grew in 2023, with sales nearing $70 billion and 84 new member farms.
- SLM Partners’ land portfolio absorbed more carbon dioxide than it released, sequestering 100,000 tonnes CO2e in 2023.
Bearish News
- Connecticut lost 460 farms over five years, with only a handful up for sale despite high interest.
- Farmland value increases in the Midwest slowed to 4% year-over-year, the smallest gain in three and a half years.
- An Indian farmer reported a 56% fall in sugar cane harvests from 2013 to 2023 despite tripling fertilizer use.
- Monsanto still faces 54,000 active Roundup lawsuits as of March 2024, with new cases filed regularly.
- Tyson’s plant closures left contract chicken farmers with over $1 million in debt and few options to repay.
- A controversial $1.2 billion solar farm is set to be built in Wyoming, carving up natural grass and farmland.
- Southern Minnesota farmers saw average net income drop to $76,181 in 2023, the lowest level since 2018.
How to invest in Farmland right now:
There’s a sexy opportunity brewing in Mexico right now. Read my write-up.
Luxury Goods
Bullish News
- The Gulf Cooperation Council luxury market reached a record $12.5 billion in 2023.
- Lululemon Athletica exhibits strong financial performance, with revenue growth of 15.63% and ROE of 17.26%.
- Mytheresa, the online luxury fashion marketplace, grew 15% in gross merchandise value in 2023.
- Louis Vuitton was revealed as one of the top and fastest selling brands on Vinted.
Bearish News
- The SEC sued a Texas man for allegedly spending $755,000 of $1.2 million from investors on luxury goods.
- LVMH’s stock fell 11% in three months despite strong financials, due to expected slower earnings growth.
- Tapestry Inc. stock dropped 0.29%, marking its third consecutive day of losses.
- Signet Jewelers director Jonathan A. Seiffer sold shares worth over $9.7 million.
- Thieves in Miami Beach stole nearly $2 million in Hermès handbags, each selling for tens of thousands of dollars.
- A New York man was arrested for breaking into a Greenwich consignment shop and stealing $100,000 in designer handbags.
How to invest in Luxury Goods right now:
It probably doesn’t help that handbags are so grabbable.
Wine, Tequila, and other Spirits
Bullish News
- Sotheby’s wine and spirits auction sales hit a record $159 million in 2023.
- The Roots Fund, a nonprofit for inclusivity in the wine industry, expanded into spirits with a $25,000 scholarship program.
- Kotobuki Spirits reported full-year 2024 revenue up 28% to ¥64.0 billion.
- A BMO Financial survey suggests North American wine sales are stabilizing, with 71% of US producers forecasting growth this year.
Bearish News
- THC-infused drinks emerged as major trends at the National Restaurant Association Show, threatening traditional alcohol sales.
- Nearly three-quarters of Gen Z and millennials actively seek out non-alcoholic alternatives.
- Daily marijuana use has surpassed alcohol consumption for the first time.
How to invest in Wine and Spirits right now:
The spirits industry is going up in smoke.
Music and Film
Bullish News
- Sony Music Publishing is considering options to enforce improved royalty rates after Spotify’s US royalties reduction.
- The global movie production market size is estimated to grow by $56.11 billion from 2024-2028.
- The global AI in Music Market will reach approximately $38.7 billion by 2033.
- Music generator Suno raised capital at a $500 million valuation, led by Lightspeed Venture Partners.
Bearish News
- Beyoncé, Jay-Z, and Sony Music were sued by Da Showstoppaz for alleged copyright infringement in Beyoncé’s 2022 hit “Break My Soul.”
- The film industry is shrinking, with US theatrical ticket sales dropping 38% over the last 10 years.
- Universal Music Group CEO Lucian Grainge demanded attorney sanctions in the Diddy sex-trafficking case.
- AMC Theatres is struggling with $4.5 billion in debt and has more than $2.8 billion of maturities due in 2026.
How to invest in Music and Film right now:
Imagine suing Beyoncé.
Metals and Gems
Bullish News
- Gold and silver hit fresh 2024 highs, with silver up 35% and gold up 18% year-to-date.
- Northern Nevada Coin saw a major influx of people buying and selling gold and silver as prices hit all-time highs.
- Signet Jewelers and De Beers announced a first-of-its-kind marketing collaboration to propel demand for natural diamonds.
- Imports of heavy rare earth oxides from Myanmar to China more than doubled to 41,700 tonnes in 2023.
Bearish News
- Nickel prices fell 43% from January 2023 to January 2024.
- Copper prices continued to slide as weakness in Chinese demand offset rising sales in other nations.
- China’s diamond market fell by approximately 6.6% from 2021 to 2023.
How to invest in Metals and Gems right now:
Silver takes the gold.
Collectibles
Bullish News
- The British Museum recovered 626 pieces out of 1,500 items found to be lost or stolen from its collections.
- Snoop Dogg partnered with The Realest to auction off his own memorabilia, ranging from photos and Playstations.
- Pokémon cards outpaced baseball cards as the largest category for PSA.
- The Premier Lacrosse League launched PLL Collectibles, debuting its own line of trading cards.
- Babe Ruth’s jersey from his famous “called shot” in the 1932 World Series will be auctioned in August.
- A collectible card featuring Michael Jordan from the 1984/85 season sold for a record $925,000.
- Adidas has prepared for its final YEEZY sneaker restock in Summer 2024, rumored to include around 60 YEEZY models.
Bearish News
- Two men were arrested for a $2 million fake sports and Pokémon card scheme.
- Police arrested a man for stealing over $2 million in vintage baseball cards before the Strongsville Sports Collectors Convention.
How to invest in Collectibles right now:
Babe’s famous jersey finally hits the block.
Websites and Domains
Bullish News
- Paul Nicks moved to a new role at GoDaddy as VP, Domain Investor, focusing exclusively on domain name investors’ needs.
- NSAV’s Centralized Cryptocurrency Exchange, NSAVx, surpassed 1.4 million users.
- Humanity Protocol bought humanity.org for $225,000, a top 10 public .org sale.
- US ecommerce penetration hit an all-time first-quarter high of 22.2% in Q1 2024.
Bearish News
- A quarter of all web pages that existed between 2013 and 2023 were no longer accessible as of last October.
- Over half of Wikipedia pages contained at least one broken “references” link, and 21% of government websites had at least one broken link.
- Only 9 NHL teams own their team name in .com, with no acquisitions in the past five years.
- Rui-Siang Lin, 23, was arrested for operating Incognito Market, a dark web hub that facilitated over $100 million in illegal drug sales.
- Small business owners on TikTok circumvented tobacco sales laws: 45% skipped age verification and 28.6% bundled e-cigarettes.
How to invest in Websites and Domains right now:
I just hope my middle school blogspot is still active.
That’s all for this week
Cheers,
Wyatt
Disclosures
- We hold BTC, ETH, and a couple Star Wars Action figures in our ALTS 1 Fund.
- There are a couple of affiliate links above. If you click them, we may get a couple of bucks.
