Monday, June 17, 2019

Industries to put your money this 2019

A strong growth prospect should be prime consideration for future investments in specific industries. You’re looking for industries with opportunities to expand into new markets and consistent upward sales trends. They deliver products or services that people already use or want to get their hands on, advises finance professional Scott Tominaga of PartnersAdmin LLC. Hereunder are some industries that show great potential, even as we enter the 2020s.

Image source: forbes.com

Artificial intelligence

AI research has been booming in the past few years, and the effect of AI in our society has never been more palpable as it is now. Companies like Google, IBM, and Uber are now taking advantage of the massive QoL changes AI is bringing, from developing complex games and autonomous vehicles to introducing apps and gadgets to the modern hospital.


Image source: inc.com
Financial services

Business development companies boasting direct equity investments, whether small- or medium-sized, comprise another promising industry. Even as the Federal Reserve seeks to raise interest rates, financial services are a great investment choice as such a move by the government simply means the industry is generating profit.

Healthcare

Already among the best-performing sectors in 2018, healthcare should continue to grow as an investment option in the coming years. This industry is one of the most solid investment options out there, even as advancements in Big Data, Machine Learning, and the Internet of Medical Things (IoMT) are being deployed.

Telecommunications

Investors in telecommunications should avoid stocks with high price-earnings ratios and instead look at firms with lower debt, advises Scott Tominaga. A shake-up in the industry has relegated tech giants like Netflix and Facebook to the revamped sector, so it’s recommended that investors look to more traditional and conservatively managed telecommunication companies instead.

PartnersAdmin LLC’s Chief Operating Officer Scott Tominaga has nearly two decades of experience in the hedge fund and financial services industry. He is an expert in middle and back office, accounting, compliance, and administrative work. Visit this blog for related posts.

Wednesday, May 15, 2019

Strategies for ensuring optimal asset allocation for your investment portfolio

Most investors are driven to engage in asset diversification based on financial goals, investment timeframe, and the willingness to take risks. But as a rule, never put all your eggs in one basket. Asset allocation is all about abiding by this saying, says financial services consultant Scott Tominaga of PartnerAdmin LLC.

Image source: advisorkhoj.com

As far as approaching asset allocation itself is concerned, you could either go for a fixed or strategic method or a tactical one. The former involves investing proportionately in different asset classes, with the returns computed based on average returns across those investment types. Tactical asset allocation is geared more toward capitalizing on short-term opportunities, with assets shifting to more favorable classes based on market timings. As soon as one short-term profit is realized, the investment process resets to its original allocation.

Image source: investopedia.com
Note that each asset class comes with its set of associated risks and returns, and often behaves differently over time. Financial experts will insist that such will depend on how an investor allocates his or her investments. But do know that choosing individual funds or securities often comes second in priority to the main types of asset categories (namely cash, bonds, and stocks).

All in all, keep in mind that asset allocation is also dictated by the investor’s age, adds Scott Tominaga. Younger investors between 21 and 30 years of age are more advised to invest heavily in equities and counteract this with some debt investments. Those in between 31 and 45 need more allocations on securities and more balanced debt-equity investments. Finally, those nearing retirement age should focus more on debt investment and less on equity.

PartnersAdmin LLC Chief Operating Officer Scott Tominaga has been in the business for over 17 years and has become proficient in the areas of middle and back office, accounting, compliance, and administrative functions within financial services firms. Visit this blog to read related posts.

Monday, April 15, 2019

The advantages of fund of hedge funds

Fund of funds, also known as a multi-manager investment, is an alternative investment strategy wherein a fund is put in another type of funds. Instead of investing directly in investment vehicles, funds are invested in a portfolio or partnerships that already contain underlying assets. One scheme of this investment strategy is fund of hedge funds.

Image source: kiplinger.com
Hedge fund investment, which Scott Tominaga has years of experience managing, has proven to be profitable for so many investors. Investing in fund of hedge funds also offers some benefits, such as the following:

Diversification: Every adept investment manager would concur that for a portfolio to be able to yield maximum possible returns and minimize exposure to risks and a single fund manager, it has to be as strategically diverse as possible. By putting in money in fund of hedge funds, an investor can get a piece of returns from all of the underlying assets and funds and gain exposure to an alternative asset type that does not compromise the overall portfolio structure.

Image source: wsj.com
Outsourcing of manager talent: Not everyone is equipped with the know-how and expertise requisite to investing. This is a reason PartnersAdmin LLC, of which Scott Tominaga is the Chief Operating Officer, offers a plethora of financial services to its clients. By investing in fund of hedge funds, it entails outsourcing the decision-making to the manager, who typically has the resources, experience, methods, network, and effective due diligence in handling this investment strategy.

Learn more about investment in hedge funds by following this Scott Tominaga Twitter page.

What does a hedge fund manager do?

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In general terms, a fund manager is a financial expert responsible for handling the funds they supervise, in such a way that such supervision is in keeping with set goals and maximized returns for the benefit of investors, says financial expert Scott Tominaga of Partners Admin LLC. Those who are seasoned players in the industry and experienced at different levels of the fund management ladder will often secure senior positions in companies.


Hedge fund managers are in charge of both long-term and day-to-day operations of funds. The overall work entails doing a variety of tasks, from balancing portfolios and marketing funds to prospective investors to creating ethical business standards and implementing office policies and procedures.

Image source: wisegeek.com
Of course, a crucial part of the challenge of the job is to seek out investors. As soon as investors come in, the hedge fund manager must ensure that any investment decision is made with the fund pool in mind. They spend their workday researching and studying the financial market and making investment plans, looking for various other investment opportunities, analyzing trends both in the media and the stock market, and networking with other businesses.

Most hedge fund managers begin as analysts then get promoted to senior analysts before becoming a full-fledged portfolio manager. Once they have fully secured their place in a company, continuous engagement is key, from creating their own team of buy-side analysts and managers to taking charge of generating senior-level investment ideas, explains Scott Tominaga.

PartnersAdmin LLC’s Chief Operating Officer Scott Tominaga has played primary roles in the establishment of several operational infrastructures, successfully interfacing with fund managers and professional service providers to establish efficient and transparent operations and reporting structures. Visit this blog for related posts.

Wednesday, February 13, 2019

What are the key roles of an investment manager?

When people want to invest some of their savings on funds, bonds, stocks, or other forms of investment, they often seek the help of an investment manager. Investment managers invest on persons, organizations, and other form of investment in behalf of their clients. According to finance expert Scott Tominaga, their regular tasks include day-to-day portfolio monitoring, buying and selling securities, measuring the performance of their portfolio, and reporting results to their clients. Besides these, here are a few key roles of investment managers.

Image source: kiplinger.com
Educating clients
It’s not enough for investment managers to tell their clients whether or not a specific company or an investment is a good one. Investment managers should also educate their clients on the types of businesses in their portfolio. And, more specifically, it’s important for them to teach clients where their money is going and the merits of choosing a company or an investment over another.

Risk management
One of the reasons why people look for investment managers to help in investing in the market is because people do not know the risks involved in investment or stocks trading. Investment managers actively assess the risks involved in investing in certain bonds or companies before they commit their client’s money.

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Holding companies accountable for their performance
Given that investment managers put their client’s funds into companies, they also have the right to hold the company accountable for any major event that can affect their investment, explains Scott Tominaga. By doing so, companies receive pressure toward sustaining success and generating growth.

Scott Tominaga is the Chief Operating Officer of PartnersAdmin LLC, whose offices are based in Los Angeles and San Diego, California. PartnersAdmin LLC was established in July 2008 with the intent of providing a quality, outsourced solution to meet the dynamic back office needs of the alternative fund industry in response to the industry’s increasing focus on reducing systemic risk and promoting investor protection. To know more about Mr. Tominaga, visit this site.

Monday, January 7, 2019

Be safe and smart: Identifying investment fraud





Illegally defrauding investors is one of the biggest acts of embezzlement one can enact in the country. Bernie Madoff made off with as much as $50 billion from his clients in one of the biggest acts of fraud in history through a Ponzi scheme. And sadly, where there is money, there are people who are willing to dupe and deceive their way into making a fortune.

This is why people can be so paranoid about investment. Handing your hard-earned money to a financial guru whose job is to make your money grow may seem outlandish, but not everyone has an acumen for business. To avoid investment fraud, here are two helpful tips you can follow.

When the returns are too good to be true, walk away

Ponzi schemes, as well as other fake financial opportunities, could easily lure people into investing their money by simply flaunting a return proposition that they cannot refuse. Madoff promised returns of approximately 1% each month. That might seem small, but in reality, it was already too good to be true. It was small enough to elude the SEC but big enough to fool even legitimate businessmen.

Do due diligence before investing

Doing background checks isn’t so hard given today’s technology, and the information found online. There are regulatory institutions like the FINRA (Financial Industry Regulatory Authority) that helps people do background checks on brokers and is available online. Not only should you do a sweep on your broker, but you should also check the company as a whole.

Scott Tominaga is the Chief Operating Officer of PartnersAdmin LLC, whose offices are based in Los Angeles and San Diego, California. PartnersAdmin LLC was established in July 2008 with the intent to provide a quality, outsourced solution to meet the dynamic back office needs of the alternative fund industry in response to the industry’s increasing focus on best practices to reduce systemic risk and promote investor protection. For more reads on investment, visit this blog.

Friday, December 7, 2018

Five essential differences between private equity and venture capital.

Private equity and venture capital are often confused because of the way both of them refer to firms that invest in companies and exit through selling investments in equity financing, including initial public offerings (IPOs). But the specifics paint a whole world of difference between the two—here are five to remember:

The companies they buy

Private equity firms largely buy mature, established companies. These might not be generating enough profits or are regressing, and they are bought in order to increase their revenues. On the other hand, venture capital firms put their money into startups that demonstrate high growth potential. While PE firms buy companies across all industries, VC firms are focused on technology, biotech, and clean tech investments.


Percentage acquired

PE firms nearly always buy 100 percent of a company, while VC firms acquire only a minority stake or less than 50 percent. While the former seeks to have total control of the firm after a buyout, the latter usually prefers to spread out risk and invest in different entities.

Amount of investment

PE firms invest at least $100 million in a single company. Venture capitalists, on the other hand, spend $10 million or less in each company, since they largely deal with startups with less predictable chances of success.


Focus

PE firms don’t maintain ownership for the long term, instead preparing for a level of exit strategy after a few years. They seek to improved upon an acquired business and sell it for a profit afterwards. Venture capitalists get involved in businesses’ earliest stages of operation, and it’s often the startup capital they provide that offers new businesses the means to become appealing to private equity buyers.

People

PE firms tend to attract former investment bankers, while VC firms obtain a more diverse mix such as product managers, bankers, consultants, and former entrepreneurs.

Scott Tominaga is PartnersAdmin LLC's Chief Operating Officer with over 17 years in the financial services industry. Read more about the finance industry on this page.