Hello and welcome to Alts Cafe
In honor of the proposed capital gains tax hike, my book recommendation this week is the award-winning The First Tycoon: The Epic Life of Cornelius Vanderbilt.
When Vanderbilt passed away in 1877, his estate was worth an estimated $100 million. His fortune represented:
- 1.25% of the American GDP
- One out of every 17 dollars in circulation
It’s an epic story of a truly self-made titan. Check it out.
If you like this, browse through the rest of my curated book recommendations.
Highlights from the full issue:
- Macro: GDP grew at its slowest rate since Q2 2022
- Real Estate: Homes had a median of 50 days on the market
- Startups: Xaira Therapeutics unveiled $1 billion in funding
- Private Credit: Goldman hired two bankers from JPMorgan
- Crypto: Arkansas passed two bills to regulate crypto mining
- NFTs: FC Barcelona exhibited its first two NFTs
- Art: Another Monet is expected to reach $30 million
- Vintage Autos: Formula 1 is heading to auction
- Coins: Archaeologists found 170 coins from the 12th century
- Farmland: Midwest Farmland is on the rise
- Luxury: Hermès had a strong Q1
- Wine, Tequila, and Spirits: RTD continues to dominate
- Film & Music: Latin music outpaced the general music market
- Precious Metals: US government is big on “phytomining”
- Collectibles: Tom Brady has bad handwriting
- Websites: pay.day sold for €21,000
Let’s go.
Wyatt
Table of Contents
Macro View
Bullish News
- US Treasury Secretary Janet Yellen noted that US growth is likely stronger than Q1 GDP suggests.
- Personal consumption expenditures rose 0.8% in March for the second straight month, the strongest in over a year.
- China’s treasury bond market has become the third-largest globally.
Bearish News
- At 1.6%, the US economy grew at its slowest pace since Q2 2022, below economist estimates of 2.5%.
- Federal Reserve Chair Powell pivoted back to a “higher for longer” stance on interest rates.
- Britain’s WPP lagged behind global ad companies with a 1.6% drop in organic revenue in Q1, hurt by a 15.4% decline in China.
What are the odds?
GDP forecasts have plummeted, and inflation rates are skyrocketing.
Get $25 to play around with using this link.
What are we doing?
Altea Highlights
Check out the full roundup.
Live Deals
There are a ton of live deals over Altea right now, but of course, the one we’re most excited about is the reopening of Alts 1, which is available to new investors through the end of May.
ALTS 1 Fund news
We are accepting new investors. Click here to express interest.
Real Estate
Bullish News
- New York’s budget bill brought back a property tax break, added tenant protections, and encouraged office-to-residential conversions.
- A settlement that will rewrite how many real estate agents are paid in the US received preliminary approval.
- The East End real estate market saw pricing statistics continue to hold near record-high levels in Q1 2024.
- Since 1870, real estate has yielded an average annual return of 7.05%.
- Homes had a median of 50 days on the market in March, but in places like Boston and San Francisco they sold in under 25 days.
- Mayor Karen Bass urged LA’s wealthy residents to support a new initiative that has raised over $10 million to purchase apartments for the city’s unhoused.
- A 12,655-square-foot home on nearly 61 acres of ranchland sold for $77 million, setting a record for Colorado.
Bearish News
- Housing experts say there is a massive shortage of 7 million homes in the US, with rents rising about 30% since 2017.
- Real estate investment platforms like PeerStreet and LEX Markets shut down due to a lack of demand.
- The insurance crisis in California is affecting the housing market, with buyers struggling to obtain affordable quotes.
- Charles “Todd” Hill, a former HGTV star, was sentenced to four years in jail and ordered to pay back $9.4 million for real estate fraud.
- The Mexican Museum is revisiting a lawsuit against San Francisco after a city audit questioned its capacity to raise funds for its new downtown site.
How to invest in real estate right now:
Speed is necessary to compete in SF and Boston, apparently.
Startups
Bullish News
- Xaira Therapeutics was unveiled with $1 billion in funding to build a drug discovery platform.
- Andreessen Horowitz raised a $7.2 billion fund focused on established startups and gaming, exceeding its $7 billion goal.
- Latin American AI startups like Traive aid farmers in weather prediction and credit access, facilitating $1 billion in financing.
- Michigan lawmakers proposed bipartisan bills for a $105 million Michigan Innovation Fund, a pre-seed evergreen fund.
- Apple quietly acquired Paris-based AI startup Datakalab in December.
- DoorDash partnered with Wakefern Food Corp., bringing nearly 120,000 new grocery items to the delivery platform.
Bearish News
- Canada’s planned capital gains tax hike may choke mining startups, with junior mining companies raising only C$1 billion through flow-through shares in 2023.
- Tulsa’s “Queen of Airbnb” saw her business collapse in a year, with unpaid rent and creditors at the door.
- A Chime customer went viral after alleging the company closed her account and refused to return her money.
- The ex-CEO of HeadSpin received an 18-month prison sentence for defrauding investors of over $100 million.
- Seattle-based digital healthcare startup 98point6 conducted a new round of layoffs.
How to invest in startups right now:
18 months for defrauding $100 million. Seems about right.
Private Equity and Private Credit
Bullish News
- Thrivent now offers PE within its Asset Allocation Funds, bringing retail investors access for $50 per month.
- CVC Capital Partners’ IPO disclosures revealed the firm has at least $6 billion committed in at least 13 sports businesses.
- AssetMark Financial Holdings agreed to be acquired by PE firm GTCR in a $2.7 billion deal.
- Goldman Sachs hired two senior bankers from JPMorgan to bolster its PE banking team.
- PE firm GTCR agreed to acquire turnkey asset management program AssetMark at a $2.7 billion valuation.
Bearish News
- New York’s $259.9 billion pension fund scrutinized $38 billion in PE funds over labor practices.
- Kim Kardashian’s PE firm SKKY Partners hit fundraising hurdles, securing only $121 million, far below its $1-2 billion goals.
- Uncertain valuation outlooks hamper PE dealmaking, with some launches delayed into 2025.
- California’s proposed AB 3129 bill could create new hurdles for PE healthcare transactions, requiring AG consent for acquisitions.
How to invest in PE and Private Credit right now:
The Kardashians did not keep up. [Ed note: sorry]
Crypto
Bullish News
- Hong Kong’s spot bitcoin and ether ETFs will launch on April 30.
- Movement Labs closed a $38 million funding round to build the first layer 2 Ethereum blockchain.
- Eminem replaced Matt Damon as the celebrity spokesperson in a new Crypto.com advertisement posted to X.
- Sam Bankman-Fried agreed to help FTX customers pursue celebrity promoters in exchange for them dropping their lawsuit against him.
- Analysts suggest Dogecoin has the potential to rally towards $1 in the coming weeks, a 700% uptrend from current levels.
Bearish News
- Consensys sued the SEC over Ethereum, asking the court to declare that Ether is not a security.
- Arkansa’s Senate passed two bills to regulate cryptocurrency mining, restricting noise limits and foreign ownership.
- The founders and CEO of cryptocurrency mixing service Samourai were arrested and charged with money laundering.
- The new IRS crypto tax Form 1099-DA brings hidden challenges for taxpayers, likely requiring KYC information before creating unhosted wallets.
- Cryptocurrency scams more than doubled in South Carolina’s Upstate region compared to 2023.
- The European Parliament’s anti-money laundering rules now cover crypto/
How to invest in Crypto right now:
For anybody who has doubts about crypto, Slim Shady should put you at ease.
NFTs
Bullish News
- FC Barcelona exhibited its first two NFTs at Moco Museum, paying tribute to Johan Cruyff and Alexia Putella.
- An ultra-rare alien CryptoPunk sold for $12.5 million in Ethereum, marking the third alien CryptoPunk sale this year.
- Manchester City launched a limited edition NFT collection of unique jerseys on OKX.
- Magic Eden surpassed Blur in NFT trading volume in March, recording $756.5 million.
Bearish News
- OpenSea’s weekly NFT trading volume plummeted from $1 billion to $20 million in just 2 years.
- The floor price for Bored Ape Yacht Club NFTs has fallen 93% from its peak two years ago.
- A 71-year-old digital artist in India lost $1,895 in a bogus NFT platform scam after being asked to pay “gas fees” and “delay fees” to withdraw earnings.
How to invest in NFTs right now:
I’m curious if we’ll see any more big Punk trades anytime soon.
Artwork
Bullish News
- Six major pieces from the John and Mary Pappajohn art collection will be auctioned at Christie’s in New York City.
- Claude Monet’s Meules à Giverny (1893) is anticipated to hammer above $30 million at Sotheby’s on May 15th.
- A Gustav Klimt portrait that was missing for a century sold at a Vienna auction house for $32 million.
- A tiny 1.8- by 2.6-inch drawing by Michelangelo sold at Christie’s for $201,600, well above its $6,000 estimate.
- The UK returned 32 gold and silver treasures stolen from the Asante Kingdom more than 150 years ago to Ghana on a six-year loan.
Bearish News
- The IRS added improper art write-offs to its “dirty dozen” list of common scams as global art sales fell 4% to $65 billion in 2023.
- Harpreet Singh was arrested for attempting to steal $250,000 worth of art in Scottsdale.
- HBO is creating a series about art dealer Inigo Philbrick, who defrauded clients of over $86 million by overselling art shares.
How to invest in Artwork right now:
Tons of big New York actions this May. Stay tuned.
Vintage Autos
Bullish News
- The first Lotus Formula 1 car, chassis number 353, is heading to auction at Bonhams in Monaco on May 10.
- Barrett-Jackson’s 2024 Palm Beach Auction achieved $46.6 million in total sales.
- A 1983 Datsun 280ZX Turbo with 72,442 miles is slated for auction at Henderson Auctions on May 18, 2024.
- Burt Reynolds’ 1977 Pontiac Trans Am, restored to look like the one from “Smokey and the Bandit,” is heading to auction in Palm Beach.
- An ultra-rare McLaren F1 in Creighton Brown, with just over 240 miles, could fetch over $20 million at Sotheby’s.
- A 1908 Mitchell Model G was selected as the 2024 Zenith Award winner for outstanding restoration.
Bearish News
- The 1969 Chevrolet Camaro Z/28 resto-mod remains a dream as Chevrolet ended the sixth-generation Camaro.
- After two decades, the Murphy Auto Museum in Oxnard is closing in July.
- MP Greg Hands has called for a debate on the DVLA’s treatment of classic cars, citing “absurd decisions” negatively impacting the classic car sector.
How to invest in Vintage Autos right now:
Formula 1 has hit the auction block.
Rare Coins
Bullish News
- Heritage’s CSNS World & Ancient Coins Auction in May will feature the Ezen Collection of Elite Sovereigns.
- Brett Charville, the new owner of Toledo Coin Exchange, is exhibiting a rare 139-year-old $5 bill issued in 1885.
- Seth Chandler, owner of Witter Coin in San Francisco, is giving away $10,000 worth of rare coins in a scavenger hunt.
- The A to Z 10p coin collection, created by the Royal Mint, includes some of the rarest and most valuable 10p coins.
- A 1962 D Washington quarter, is one of the rarest quarters, with the most expensive selling for $18,400 in 2012.
- Swedish archaeologists discovered 170 silver coins dating to the 12th century in a grave on the island of Visingsö at Lake Vättern.
- Certain $2 bills can fetch $4,500 or more, with an original uncirculated 1862 bill ranging from $500 to over $2,800.
Bearish News
- The Wall Street Journal proclaimed “Coins are good as junk“, as US Mint production dropped to 72% in March compared to the previous year.
- A rare dime turned into a pin lost all its value, as solder blobs cut its worth from $900 to zero.
How to invest in Rare Coins right now:
Think twice before trying to alter your coins with a homemade soldering kit.
Farmland
Bullish News
- Suffolk County Executive Ed Romaine signed legislation appropriating $15 million for farmland preservation in 2024.
- The Midwestern farmland price index rose to a solid 56.5 in April, continuing to expand for the 53rd straight month.
- South Carolina’s new $3 million “Working Agricultural Lands Preservation Act” aims to protect millions of acres of farmland from development.
- Farmland values in southwest Minnesota have risen nearly 40% in four years.
- The New York State Department of Agriculture awarded $500,000 to 50 county and youth fairs to boost promotion.
- Applegate Farms LLC announced a $50,000 donation to American Farmland Trust’s Brighter Future Fund.
Bearish News
- The rate of farmland value increases slowed due to tighter profit margins and higher interest rates.
- Taxpayers foot the bill for crop insurance subsidies, costing almost $10 billion a year from 2011 through 2021.
- The US is losing roughly 2,000 acres of farmland every day.
- New York’s RAPID Act aims to accelerate clean energy, but it may clash with worker and farm protections due to a proposed fee for solar projects on farmland.
How to invest in Farmland right now:
Check out Harvest Returns.
Luxury Goods
Bullish News
- LVMH partnered with Stanford HAI to explore innovative AI applications in the luxury sector.
- TikTok Shop expanded its secondhand luxury fashion offering to the UK and sold $1 billion worth of products since launching.
- Hermès reported a 17% surge in Q1 sales to 3.81 billion euros.
- Prada’s sales in Japan rose by nearly 46% in Q1 and Moncler saw a 26% jump in revenue across Asia.
- Ramy Brook Sharp signed on for Saks Media Network to gain access to luxury customer data from 435 million site visits.
Bearish News
- Gucci’s revenues plunged 18% to $2.2 billion in Q1 as shares slid 9.5% to a six-year low.
- The FTC sued to halt the $8.5 billion merger between Tapestry and Capri.
- A crime gang falsely claimed over £50 million in universal credit and spent the money on luxury items and holidays.
- US Customs and Border Protection seized nearly 23 million counterfeit goods worth over $2 billion last fiscal year.
How to invest in Luxury Goods right now:
LVMH x Stanford was not a collaboration I was expecting.
Wine, Tequila, and other Spirits
Bullish News
- The RTD category has tripled since 2018 to $10.3 billion in sales.
- The whisky and spirits industry reported that 40% of whisky drinkers are women.
- Alcohol-free wine brand Eisberg updated its core collection and is planning further expansions.
- Heineken reported beer sales were up in its Q1 fiscal 2024, with premium beer up 7.3%.
- The landmark two-part auction celebrating Le Gavroche achieved a combined total of £2,269,276.
- Surfside, a category leader in iced tea and lemonade-vodka RTDs, grew 563% in just its second year on the market.
Bearish News
- California’s new Bottle Bill has faced a rocky rollout as the industry struggles to comply.
- Evanston, Illinois’ 6% liquor tax is hurting local businesses, with some paying $50,000 in taxes.
- A ransomware attack on Swedish logistics firm Skanlog has disrupted liquor distribution, with Sweden’s sole liquor retailer warning of empty shelves soon.
- Wildfires in California’s Wine Country are causing major insurers to leave or not renew over 72,000 policies.
How to invest in Wine and Spirits right now:
Find a way to invest in RTD.
Last chance to get in on our tequila SPV. Let me know if you’re interested.
Music and Film
Bullish News
- Blackstone made a $1.5 billion rival bid for Hipgnosis Songs Fund, trumping Concord’s $1.4 billion offer.
- Latin music revenue in the US hit $1.4 billion in 2023, outpacing the general music market for a second year with 16% growth.
- The Dance Music Industry recorded a 17% revenue surge in 2023, pushing the total market value to $11.8 billion.
- AWA Studios appointed Victoria Rossellini as a senior strategic advisor.
Bearish News
- The US Department of Justice plans to sue Live Nation, Ticketmaster’s parent company, for antitrust, citing its 80% control over primary ticket sales in large venues.
- The US Senate passed a bill that would force TikTok’s China-based parent company to sell the app or face a ban.
- Florida’s film industry, once third in the nation for production work, faced major setbacks and now doesn’t even rank in the top 20.
How to invest in Music and Film right now:
Here’s to cheaper ticket prices.
Metals and Gems
Bullish News
- The US government invested $10 million in “phytomining” research, a process that uses plants to extract metals.
- Trafigura projects 10 million metric tons of additional copper demand in the next decade, with prices nearing $10,000 a ton.
- Chinese gold demand remained strong as prices pushed to record highs.
- The Alabama Senate Education Budget Committee passed legislation to end state capital gains taxes on gold and silver.
- Startup Pascal raised $10 million to sell affordable lab-grown diamond jewelry to Gen Z, with a high 20% repurchase rate.
- The CME Group reported record metals trading volumes driven by gold’s surge to all-time highs.
Bearish News
- Red Rock Secured defrauded 950 people of $69 million in a precious metals scheme.
- The lab-grown diamond boom has ended, according to industry experts.
- Impala Platinum could lay off around 3,900 workers, 9% of its workforce, due to a platinum price rout.
- Two Lincoln women are accused of embezzling $46,576.55 from Alter Metal Recycling using 34 fraudulent tickets.
How to invest in Metals and Gems right now:
Lab-grown diamonds? In with the old, out with the new, I suppose.
Collectibles
Bullish News
- The collectibles market is projected to reach $594.2 billion in 2024.
- A game-worn Mickey Mantle jersey from his 1957 MVP season is expected to sell for seven figures at auction.
- The Turkish Trade Ministry put up three pairs of Michael Jordan autographed sneakers priced at $153,783.
Bearish News
- Collectors alleged Tom Brady’s sloppy penmanship ruined memorabilia at a $3,600 event, with Beckett Collectibles rejecting the signed items.
- Cosmic Comics Games & Collectibles, open since September 2018, will close in August due to insufficient revenue.
How to invest in Collectibles right now:
Turns out a perfect spiral doesn’t translate to calligraphy.
Websites and Domains
Bullish News
- The owner of the new TLD hack pay.day sold the domain on Sedo for €21,000.
- Andrew Miller, Managing Director at ATM Holdings, brokered the $15.5 million sale of Chat.com.
- RightOfTheDot is set to host a groundbreaking digital asset auction at NamesCon 2024, featuring premium Web2 and Web3 domain names.
Bearish News
- Scope3 research found that a third of web domains contain “problematic placements” for ads, wasting an estimated 184,400 MT of CO2 emissions annually.
- The Justice Department seized four domains from LabHost, a Russian spoofing service that created over 40,000 spoofed websites, affecting over a million victims.
- A royal fan hijacked the UK domain for Meghan Markle’s new venture, redirecting it to a Trussell Trust fundraiser.
- Baird lowered VeriSign’s price target to $200 from $215, citing the company’s challenging Q1 2024 results.
- West Virginia International Yeager Airport’s attempt to reverse hijack the domain name flyCRW.com failed due to lack of evidence.
How to invest in Websites and Domains right now:
Of all airport hijacks, this is probably the least alarming one to lose.
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.
