In the world of investments, the word “esoteric” may seem unfamiliar to many, and with the added changes and complexity of today’s financial markets, the concept can be difficult to navigate.
Esoteric investments are often difficult for the lay investor to understand, but present unique opportunities that shouldn’t be overlooked. Arshad Azim, the Managing Principal at Crescentem, says that it doesn’t have to be that complex.
Arshad Azim has built his career by helping institutional investors. Not only has he helped them allocate capital meaningfully, but in a way that is directly in line with their organizational values. An expert in alternative investment management, he has generously offered to share an overview of esoteric investments.
When asked about the core imperative culture of Crescentem, Arshad Azim said, “Crescentem was established with the explicit cultural mandate to cultivate relationships between institutional investors and investment managers to engender trust. Accomplishment of this cardinal imperative of investing – trust – is the only benchmark we seek to measure our success against.”
With the fundamental value of trust, Arshad Azim has built international connections through Crescentem in the U.S., GCC and beyond, and has facilitated unique partnerships between institutional investors and investment managers alike.
Esoteric investments, as the name suggests, are a class of investments that are not mainstream and often lack the widespread understanding that traditional investments like stocks and bonds enjoy. These can include investments in rare collectibles, real estate ventures, bespoke financial instruments, or even specific niche markets. These investments often require specialized knowledge to understand their risk profiles and potential upside. That’s where Arshad Azim of Crescentem steps in.
So, why might someone venture into the realm of esoteric investments? One of the primary reasons is diversification. Traditional investments tend to move in tandem with broader economic cycles. However, esoteric investments, given their unique characteristics, often remain decoupled from these cycles. This means that they can offer a hedge against traditional market downturns or provide returns when mainstream markets are stagnant.
Moreover, the niche nature of esoteric investments can result in higher potential returns. Since these investments aren’t as widely understood or pursued, there’s often less competition, allowing for more favorable entry points. Furthermore, as more investors recognize the value of these unique opportunities, there’s potential for significant appreciation.
However, it’s essential to understand that with greater potential rewards come increased risks. The lack of liquidity, transparency, or standard valuation methods can make esoteric investments more challenging to navigate. Hence, they’re typically best suited for seasoned investors or those working with advisors with expertise in the area.
In the evolving landscape of global finance, esoteric investments are becoming increasingly relevant. They offer both individual and institutional investors a chance to diversify portfolios, hedge against traditional market risks, and potentially realize untapped gains and potential. With any investment, due diligence and understanding the asset is crucial.
While his work at Crescentem reflects a more instructive approach, Azim is a champion of information transparency and knowledge sharing, which is why he has taken it upon himself to take the guesswork out of investing for investors worldwide.
For Azim, it’s also about maintaining core ethical values.
He says that, “We are engagingly expansive about the need for fair markets and equitable competition in the investment management industry.”
Arshad Azim says that Crescentem’s goal is to always prioritize investors.
