It seems that things are getting worse as the virus continues to spread. I am hopeful that things will get better soon but I freely admit that I have no idea which way the world is turning. It is clear, however, that every day I hear and expect you do as well about a person or people who have passed do to the virus. There seems like nothing can truly be done. The scary part to me, is the unknown, however with that being said, I do believe it will get better and that while it is clearly pretty dark right now, the dawn is coming. And while the hits just keep on coming, it is not the end of the world as we know it.
The hedge fund industry seems to be weathering the storm. Some managers have done extremely well and have managed the volatility, making money as the market goes through continuous peaks and valleys. As investors, this is a time to check on managers and see how they are making out not only with their investing but with their operations. There are a lot of unknowns when people are working from home and we as investors need to ask questions and get answers. You need to be in constant contact with managers so that you can understand how your money is being managed during this incredibly difficult time. Managers who tell you things are fine; operations are running smoothly and that they have had no hiccups in setting up and implementing remote operations are ones you should pay close attention too. Nobody had a business continuity plan that had all of their people working remotely. They may have had disaster recovery plans that allowed them to move operations to alternate locations but having all of their people operate from home is something no one had a plan for. This is the time for active due diligence. Stay in touch and ask questions and demand answers. There is a lot of information that needs to be shared when operating in the unknown. The best investor is an informed investor.
Separately, I think it is amazing how companies have adapted to the new normal of working from home and even more amazing how stores and restaurants have adapted. It is also very cool to see how manufacturers have been able to retrofit assembly lines to make critical supplies. It shows the strength of our resolve and our ability to find ways to make things better even when things are pretty bad.
THINGS THAT DRIVE ME CRAZY:
I am up to 20 plus emails a day from professional service firms – law firms and accounting firms with their insight and ideas on the virus’ effect on business, how to apply for an SBA loan, what the new tax rules mean, how to file an insurance claim and how to stay fit while working from home – not to mention webinars on all of these topics and more including tools to use in your home office. Talk about the hits that just keep on coming, this needs to stop and stop soon.