Hello and welcome to Alts Cafe
This is everything you need to stay up to date in alternatives.
Highlights from the full issue:
- Macro: The Eurozone economy grew 0.4% quarter-on-quarter
- Real Estate: Pending home sales surged 7.4% in September
- Startups: BETA Technologies raised $318 million in Series C
- Private Credit: PC fundraising reached $51 billion in Q3
- Crypto: Solana raised $173 million across 29 projects
- NFTs: NFT trading volumes plunged over 90% since 2021
- Art: Art spending among wealthy millennials fell 54% in 2024
- Vintage Autos: A 1957 Jaguar is set to fetch $14.5 million
- Coins: A 1975 ‘No S’ Roosevelt dime sold for $506,250
- Farmland: South American soybean production broke records
- Luxury: Fendi opened its first Madrid boutique
- Wine, Tequila, and Spirits: Hong Kong cut spirits tax to 10%
- Film & Music: Paramount was hit with a class action lawsuit
- Precious Metals: Gold futures surged past $2,760 per ounce
- Collectibles: A Fleming mold medallion sold for $76,000
- Websites: The domain OOV.com sold for $400,000
Let’s go.
Wyatt
Table of Contents
Macro View
Bullish News
- The Eurozone economy grew 0.4% quarter-on-quarter, its fastest pace in two years.
- US weekly jobless claims dropped to 216,000, a five-month low, while consumer spending rose 0.5% in September.
- The global economy is expected to maintain a robust 3% growth rate in 2024, with the US outpacing G10 peers.
- China’s manufacturing activity expanded for the first time in six months as stimulus measures took effect.
Bearish News
- JPMorgan Chase agreed to pay $151 million in fines for misleading disclosures and failing to protect investors.
- A PwC survey revealed heightened recession concerns for the US economy.
- Hungary’s GDP declined 0.7% in Q3, entering its second recession in two years.
- US manufacturing activity dropped to its lowest level in 2024.
What are the odds?
Interested to see how the election moves the needle.
Get $25 to play around with using this link.
What are we doing?
Altea Highlights
Check out the Nashville trip recap. Only click the link if you want to learn:
- How music royalties work as a passive income stream and why they’re gaining traction with investors looking for alternatives to stocks and bonds.
- What cutting-edge music tech startups are doing to revolutionize fan engagement, royalty distribution, and ownership in the digital age.
- Which types of music memorabilia are valuable investments and the factors that drive their appreciation over time.
- Key insights from industry insiders on navigating the music investment landscape and the emerging trends shaping its future.
You can also watch me nod along like I know WTF a Neve soundboard is.
Real Estate
Bullish News
- Pending home sales surged 7.4% in September across all US regions, reaching the highest level since March.
- Dallas-Fort Worth ranked as the top market for real estate investment in 2025, supported by the fourth-fastest employment growth nationally.
- Active home listings jumped 29.2% year-over-year in October, with new listings rising in every region of the US.
- Norway’s sovereign wealth fund acquired a 97.7% stake in Sand Hill Commons for $217 million.
Bearish News
- US Justice Department sued Rocket Mortgage for discrimination after an appraiser cut a Black homeowner’s property value by 25%.
- Office Properties Income Trust warned of potential bankruptcy as it struggles with $457 million in maturing debt.
- Commercial real estate foreclosures jumped 48% nationwide, with California seeing a 238% surge in September year-over-year.
- China’s $562 billion loan program for unfinished homes fell short of market expectations, causing property stocks to drop 8%.
How to invest in real estate right now:
Dallas is becoming a real estate star.
Startups
Bullish News
- BETA Technologies secured $318 million in Series C funding for its electric aircraft development.
- Sierra, co-founded by former Salesforce co-CEO, raised $175 million at a $4.5 billion valuation.
- African fintech Moniepoint secured $110 million in Series C funding, processing $17 billion in monthly transactions.
- Female Founders Fund successfully returned its first fund of $5.85 million after 10 years.
Bearish News
- GitLab faces a class action lawsuit over alleged false statements about AI capabilities.
- Zoe conducted its second round of layoffs in six months, cutting 50% of marketing and 80% of nutrition coaching teams.
- Tech layoffs in 2024 have already reached 130,000 jobs across 457 companies.
How to invest in startups right now:
Gitlab should blame it on hallucinations.
Private Equity and Private Credit
Bullish News
- KKR and Energy Capital Partners announced a $50 billion partnership focused on data centers and AI infrastructure.
- Blackstone neared a $5 billion investment in Rogers Communications’ wireless infrastructure.
- PC fundraising reached $51 billion in Q3, with direct lending accounting for 76%.
- Advent International, with $90 billion in assets, completed the acquisition of Volue, expanding its technology portfolio.
- TPG collected nearly $5 billion for its second PE climate fund.
Bearish News
- Britain announced plans to increase taxes on PE performance fees to 32% from 28%, with further reforms looming in 2026.
- The UBS and Credit Suisse merger faced integration hurdles in their asset management operations.
How to invest in PE and Private Credit right now:
Hate a looming reform.
Crypto
Bullish News
- Solana secured $173 million in funding across 29 projects in Q3, attracting major players like Visa, PayPal, and Franklin Templeton.
- Tron achieved its second-highest monthly revenue at $205 million in October.
- VeChain’s VET price rose 4% as analysts predict a 10.5% increase by the end of November 2024.
- Researchers developed a new blockchain security system combining federated learning to protect IoT devices from cyber attacks.
- Argentina emerged as Latin America’s crypto leader with women comprising 30% of participants and high transaction volumes.
Bearish News
- Crypto exchange M2 suffered a $13.7 million hack of Bitcoin, Ethereum, and Solana.
- The SEC’s enforcement actions have cost crypto firms $400 million in legal defense.
- LottieFiles was compromised in a supply chain attack, with one victim losing $723,000 in Bitcoin.
How to invest in Crypto right now:
Argentina is coming for the crypto crown.
NFTs
Bullish News
- Ubisoft launched Champions Tactics with NFTs ranging from $7 to $64,000, featuring a free-to-start model for turn-based battles.
- Codius, a smart contract platform, announced plans to enhance XRP Ledger’s scalability through off-chain processing.
- Pudgy Penguins expanded into 2,000 Walgreens locations after generating $13 million in retail sales.
- OpenSea and Art Blocks formed a partnership to develop a custom Art Blocks Engine contract for generative minting.
Bearish News
- Weekly NFT sales dropped 7% to $89.1 million, with Bitcoin NFT sales declining 30%.
- Champions Tactics game launch drew criticism for high-priced digital collectibles, raising accessibility concerns.
- NFT trading volumes plunged over 90% since the 2021 peak of Beeple’s $69.3 million sale.
- SEC investigations into NFT companies expanded after multiple enforcement actions against Impact Theory and Stoner Cats.
How to invest in NFTs right now:
It’s fun to think about SEC officials learning about the ins and outs of NFT collections.
Artwork
Bullish News
- The Manhattan DA’s Antiquities Trafficking Unit recovered 5,800 stolen objects since 2017.
- Christie’s announced a Magritte masterpiece estimated above $95 million for its November evening sale.
- Pearl Lam Galleries expanded globally, debuting at 1-54 London and Art Basel Miami Beach and offering a new residency program in Shanghai.
- Since the pandemic, Baton Rouge galleries reported increased sales of large-scale commissioned works and custom pieces.
Bearish News
- Mumbai customs seized and threatened to destroy seven artworks by renowned artists FN Souza and Akbar Padamsee over obscenity claims.
- Art Cologne faced a challenging market. Ten galleries withdrew due to financial difficulties, reducing the total number of exhibitors to 165.
- Wealthy millennial collectors reduced their average art spending by 54%.
- Scott Kahn was issued a $7.5 million lawsuit for allegedly breaching exhibition contracts.
How to invest in Artwork right now:
What are wealthy millennials spending their money on? [Ed: Uber Eats, mostly.]
Vintage Autos
Bullish News
- A rare 1957 Jaguar XKSS, one of only 16 examples, is expected to fetch $14.5 million at RM Sotheby’s London sale.
- Richard Petty’s 1970 Plymouth Superbird will head to the Mecum Kissimmee auction in January 2025.
- RM Sotheby’s Rudi Klein Collection auction achieved a perfect 100% sell-through rate, generating $29.6 million.
Bearish News
- A Charlotte luxury auto theft ring stole millions in high-end vehicles, with two members facing up to 20 years in prison.
- Police recovered 35 stolen luxury vehicles worth $7.7 million, but five cars remain missing in Thailand after an eight-year investigation.
How to invest in Vintage Autos right now:
Happy I don’t have a taste for vintage Jaguars. Looks like an expensive hobby.
Rare Coins
Bullish News
- Heritage Auctions announced the Bruce Sherman Collection will be offered in January 2024, featuring a PR67+ Deep Cameo 1835 Classic Head half eagle.
- A rare 1975 ‘No S’ Roosevelt dime, one of only two known examples, sold for $506,250 at GreatCollections.
- A trove of 2,584 Norman silver coins dating to 1066-1068 sold for $5.6 million, becoming the most valuable treasure found in British history.
- The 2024 Silver Proof Set reached 149,924 sales in four months.
- The Royal Mint offered collectors a chance to purchase a rare 1916 Canada Sovereign, one of only 50 surviving examples from an original mintage of 6,119.
Bearish News
- Americans discard up to $68 million in coins annually through everyday trash disposal.
- A St. Charles coin show vendor was charged with stealing $250,000 in collectible currency from a shared hotel room.
How to invest in Rare Coins right now:
Funnily enough, I just was wondering where I’d placed my trove of 2,584 Norman silver coins dating to 1066-1068…
Interesting coin-cidence! [Ed: FFS.]
Farmland
Bullish News
- Farmland Reserve completed a $289 million acquisition of 41,554 acres across eight states from Farmland Partners.
- HudsonAlpha’s AgTech Accelerator invested up to $100,000 in each of six agricultural technology startups.
- The Texas General Land Office acquired the 353,785-acre Brewster Ranch, securing mineral-rich property for future revenue generation.
- South American soybean production hit record levels as Brazil expanded acreage by 2.8% and Argentina grew 7%.
- Rural Oklahoma received $700 million in investments across 1,500 projects in 2024, including $88 million for water infrastructure.
Bearish News
- Floods killed hundreds and destroyed thousands of hectares of farmland in Spain’s Valencia region, devastating the world’s top orange-exporting area.
- Farm return on assets sharply declined, with operating expense ratios reaching 100% for the bottom 20% of producers.
- The inheritance tax reform announced will severely curtail agricultural property relief starting April 2026.
- A Democratic candidate challenged Tyson Foods’ influence after receiving multiple pollution complaints in east Oklahoma.
How to invest in Farmland right now:
Oklahoma!
Luxury Goods
Bullish News
- Mytheresa announced plans to acquire Yoox Net-a-Porter.
- Miu Miu’s revenue doubled in Q3, up 105% year-over-year.
- Fendi opened its first Madrid boutique in the luxury Salamanca district.
- Burberry shares rose 3.65% to £8.12, outperforming the FTSE 100 Index.
- Hermès reported an 11.3% sales increase in Q3, generating €3.7 billion in revenue.
Bearish News
- A luxury car theft ring stole over $2 million in high-end vehicles across nine US states, including from airport locations.
- LVMH reported just 3% organic growth, with fashion and leather goods revenue down 5%.
- Chanel’s jewelry head warned of luxury fatigue as customers question the industry’s value.
How to invest in Luxury Goods right now:
How do we get fashion back to being in fashion?
Wine, Tequila, and other Spirits
Bullish News
- Hong Kong slashed its spirits tax from 100% to 10%, opening access to Asia’s $33.8 billion whisky market.
- The Glenlivet launched its 55-year-old Eternal Collection through Sotheby’s, with an estimated value of $70,000.
- A complete set of Hanyu Ichiro’s Malt Card Series went to auction with an estimated value of $1.3 million.
- Five bottles of Domaine de la Romanee Conti Richebourg 1990 sold for $16,250 at Bonhams Skinner.
- Kylie Minogue’s alcohol-free wine range expanded after her rosé drove 50% of the category’s growth with 1 million bottles sold.
Bearish News
- Napa County’s strict regulations are strangling small wineries. Many are unable to conduct tastings due to permit requirements that can cost up to $5 million.
- Chinese investors abandoned Bordeaux wineries after a decade of acquisitions.
- The UK announced a 2.7% tax increase on wine and spirits starting February 2025.
- Major drinks companies struggled with non-alcoholic ventures, with AB InBev missing its 20% no-alcohol sales target for 2025.
How to invest in Wine and Spirits right now:
Alcohol-free wine is all the rage.
Music and Film
Bullish News
- RR Auction’s Modern Music sale featured a rare Beatles album signed for Liverpool’s Empire Stage Manager in 1963.
- The decorative film market is projected to reach $32 billion by 2034, with a 5.3% CAGR.
- Disney secured a 10-year exclusive deal to broadcast The GRAMMYs across ABC, Hulu, and Disney+ starting 2027.
- Sony Music Middle East acquired the catalog of Mediterranean music star Amr Diab, including hits like Inta El Haz and Zay Manty.
- Music Licensing Inc. achieved a 110.43% ROI on its royalty stream deal involving works by Miley Cyrus, Elton John, and Lil Nas X.
Bearish News
- Cineworld faces 18 cinema closures if landlord negotiations fail, following five site shutdowns over summer.
- Live Nation and Ticketmaster failed to block a class action lawsuit over artificially high ticket prices.
- Paramount was hit with a class action lawsuit for sharing subscribers’ viewing data with Meta and TikTok.
How to invest in Music and Film right now:
Ticketmaster is on the hot seat!
Metals and Gems
Bullish News
- Gold futures surged past $2,760 per ounce, with silver reaching $34 per ounce, its highest price in 12 years.
- The global jewelry market size is expected to grow by $107.9 billion from 2024-2028, with a CAGR of 5.45%.
- India’s gem and jewelry market is projected to reach $133.96 billion by 2030, with a 17.35% CAGR.
- Eldorado Gold reported Q3 2024 revenue of $331.8 million, a 36% increase from Q3 2023.
Bearish News
- Debswana’s diamond sales plunged 52% to $1.53 billion in the first nine months of 2024.
- Diamond miners resorted to high-grading practices, risking rapid depletion of reserves amid price collapse.
- China’s state enterprise acquired control of the last foreign-owned rare earth refineries while classifying sector details as state secrets.
- Gold dropped below $2,750 as profit-taking intensified, with silver declining below $33.00.
- First State Depository owner was convicted of fraud after $50 million in precious metals went missing from client accounts.
How to invest in Metals and Gems right now:
Indian gems are on the come up!
Collectibles
Bullish News
- RR Auction’s November sale features rare JFK items, including a Tiffany & Co. Cuban Missile Crisis calendar and hand-drawn PT-109 sketches.
- The “Gone with the Wind” memorabilia auction includes the iconic Peacock Lamp, estimated at $35,000, and original costume sketches, estimated at $15,000.
- A Fleming mold medallion used in the discovery of penicillin sold for a record $76,000 at Bonhams.
- Reebok and Beams collaborated on a premium $230 Instapump Fury sneaker.
Bearish News
- A Fargo woman stole over $500,000 in collectible currency from her employer at Bloc Galleries, and an additional $100,000 worth has already been sold.
- Manhattan prosecutors issued an arrest warrant for antiquities dealer Edoardo Almagià for trafficking thousands of looted artifacts valued at tens of millions of dollars.
How to invest in Collectibles right now:
Who knew a “fleming mold” could be so valuable?
Websites and Domains
Bullish News
- The three-letter domain OOV.com sold for $400,000, matching Peace.com as the highest publicly reported LLL.com sale of 2024.
- The global DNS tools market is projected to grow by $2.06 billion by 2028 at a 12.11% CAGR.
- Freedom To Watch PAC’s innovative digital campaign reached 5 million voters through adult websites.
- Amazon invested in creator economy firm Spotter, which backs major creators like MrBeast and Dude Perfect.
Bearish News
- Over 4 million WordPress sites remain vulnerable to attacks through a critical LightSpeed cache plugin bug.
- GoDaddy’s aftermarket revenue dropped to $106 million in Q3, down from $112 million in Q2.
- Over 12,800 domain names were used for fraud with Vietnam’s .vn suffix since 2021.
- South African domains have faced a surge in impersonation scams, particularly targeting international brands like Nike and Amazon.
How to invest in Websites and Domains right now:
Makes sense. OOV really is the perfect URL.
That’s all for this week
Cheers,
Wyatt
Disclosures
- We hold BTC and ETH in our ALTS 1 Fund.
- This issue was brought to you by our friends at Geoship.
- There are a couple of affiliate links above. If you click them, we may get a couple of bucks.
