I remember about a study on investment behavior included in the examination review package for the Chartered Financial Analyst (CFA) examination in 1996-98. The study showed that an ordinary monkey can achieve better stock-picking performance than an ordinary fund manager. Why? It is because monkeys are less likely to be influenced by market sentiments than humans. Fund managers, as humans, have emotions.
This is why I don’t rely on market trends alone to inform me of property market forecast. I started Bridgeway, an asset management business, after buying and selling over a thousand businesses in Hong Kong. I started with the sole focus in shop property market. My experience tells me that supply of quality shop properties in urban areas in Hong Kong and major cities around the world will be increasingly scarce, a phenomenon that has emerged as a result of investors adopting a “buy-hold-for-life” strategy in the prime locations, often regardless of the economic or market condition. On the other hand, I believe urbanization and tourism will provide a long-term support for the demand for physical shop spaces by certain retailers (despite e-commerce). Hence, I believe the keen demand for properties in core, urban areas of major cities will sustain in the long term. Economics 101 teaches us that as supply decreases while demand increases or just remains unchanged, prices go up.
However, most people find it difficult to gain access to high-quality prime shop properties because investment in shop properties is both capital and knowledge intensive. For some, this could mean their life savings. Others with sufficient capital may desire to diversify their investments: putting a substantial amount in one single prime shop investments is akin to piling all capital into a single lot in the Monopoly board game, and stakes involved are substantial and concentration risks may be substantial. In light of this, Bridgeway helps its customers by offering different themed property funds to diversify their investments, providing secondary platform to increase liquidity, and leveraging its expertise in business networks with operators, tenants and strategic partners to maximize appreciation potential while minimizing potential risks. Of course, the property investment market offers better odds when compared to the Monopoly board game in the sense that it allows for more winners. Although we cannot guarantee short-term return, we provide you with the opportunities to invest in high-quality properties as well as participate in loan investments with investment return that are otherwise inaccessible for many. As we operate the Bridgeway fund businesses, we found that some of our clients demand investments that can serve as a hedge to the property investments . Loan fund may provide such a hedge.We walk the talk. Bridgeway prides on its reputation and networks in real estate and loan investment sectors. We look forward to meeting you and investing along with you, together we turn a new page on property and loan investments in Hong Kong and worldwide.