I’m going to tell you about a Wall Street insider you’ve never heard of. Yes, he’s a billionaire. But that’s where the similarities to household names like Warren Buffett end. Unlike most famous investors, he became a billionaire recently.
This Wall Street rising star co-founded his empire only 12 years ago. An empire that no one outside of Wall Street has heard of.
Fortunately for us, I was invited to look behind the scenes when his empire was still new. That’s a perk of being a due diligence officer for a large company. I’ve known the business almost since it began. And I’ve seen his recipe for success… and how investors can follow it to build their own wealth.
At the Intelligent Income Daily, we’re all about putting potential investments to the test to find which will crumble in tough times and which will thrive and deliver you safe, reliable income for years to come.
Today, I’ll share with you the unique way this newly minted billionaire made his money. And more importantly, how you can mimic his proven strategy.
The Sector Poised for Success
This man is extremely popular on Wall Street, and almost nowhere else. To me, that’s the perfect combination. He has the respect of his peers but isn’t widely followed by the masses. Once everyone knows about a strategy, it’s harder to make money using it.
His name is Michael Rees, co-founder of Dyal Capital. Like most great ideas, Michael’s was simple.
Through his time as a COO at an alternative investments business called Neuberger Berman, Michael came to believe alternative investment managers were poised for massive long-term success.
Witnessing the profit potential and subsequent success of these alternative investments firsthand changed the course of Michael’s life. And it’s no surprise – Neuberger Berman is a large investment shop that I’ve used in the past because they are a great organization.
Michael was able to predict the rapid growth of alternative investments – that’s real estate, private equity, private credit, and infrastructure. In effect, it’s everything but traditional stocks and bonds.
And he was one of few who realized that this is exactly where investors wanted to put their money.
Investors back then were craving solutions outside of the stock market and regular bonds, just like they are now.
Because while the stock market is an invaluable wealth-generating tool, it has its drawbacks. Equities have high volatility. And they tend to change drastically in price during booms and busts. Bonds were unattractive because of low interest rates.
But if Michael’s company could make strategic investments in those alternative investment managers, his investors would experience equally great success.
And that’s exactly what happened.
Dyal Capital’s three latest funds averaged a net internal rate of return (IRR) of 37%. That’s nearly 4x the S&P 500’s average 10-year return. For context, Dyal’s performance over 10 years turns $1 into $23.
Now you know why he’s so popular on Wall Street.
Most importantly, these alternative asset managers were highly profitable. Provided they did right by investors, they earned massive fees. Michael was able to select the better managers, and as a result, his investments paid off big.
And now, we can easily profit from Michael’s proven business model. Many of the highest-quality alternative asset managers in the world are publicly traded. That means you and I can buy stock in them just like Michael did to build his impressive wealth and track record. We’ll show you how…
Michael Rees, fourth from the left, at the New York Stock Exchange
Source: Financial Times
Following Winners’ Leads
At Wide Moat Research, we’re always following the market for winning companies that will sustain their success. Dyal Capital is now publicly traded as part of Blue Owl Capital Inc. (OWL). And Wide Moat Research is one of the few that’s been following Blue Owl since its IPO in late 2020.
Blue Owl is the newest kid on the block among its peers. Others, like Blackstone Group (BX), Brookfield Asset Management (BAM), and Ares Management (ARES) are also top names every investor should consider. These companies make significant and reliable profits year after year. By investing in these managers, you can build wealth right alongside them.
Similar to when Dyal was founded in 2010 after the Great Recession, right now people are less confident in stocks than ever. That makes these alternative asset managers even more valuable.
And that’s exactly why Brad Thomas and I launched High Yield Advisor, an alternative investment service designed to protect you from the volatility of the stock market while utilizing little-known plays to profit from downturns. Most are simple to buy right from your brokerage account.
Now, you can add them to your overall investment strategy to generate healthy double-digit yields, manage risk, and limit exposure to the broad markets… regardless of whether stocks go up or down. If you would like to learn more, click here.
[For those that aren’t ready to sign up, we recently recommended one of our favorite asset managers in our Intelligent Income Investor portfolio. It yields nearly 4% and could help you profit alongside billionaire asset managers like Rees. To learn more about this pick, click here.]
If you are worried about the volatility of stocks, forget about them. And instead, give yourself the same advantages as Wall Street’s newest billionaire.
Happy Investing,
Stephen Hester
Analyst, Intelligent Income Daily