Baumstein Capital is an alternative independent asset management firm since 1995, with Head Office in Canton of Tessin – CH, grounded in merging alternative economic-financial theory and practical application. Our experience and continuous studies have led us to the belief that “the behaviour of the whole is fundamentally different from that of basic components”.
We are proud to be an independent asset manager in Swiss Market. Our autonomy has been desired, conquered and cultivate with determination in order to offer effective alternative asset management and consulting solutions as developed on our own specific skills.
We provide our clients – including Institutional Investors, such as Pension Funds, Insurance Companies, Endowments, Foundations, Family Offices, Private Banks and Financial Advisors – with an alternative systematic approach to portfolio construction.
We are a diversified alternative asset managers with an extensive and decades long experience working in important financial institutions and with global asset managers, Broker & Dealers, Bank Treasury Offices and use an interdisciplinary not-traditional research-driven approach to identify and suggest opportunities and set up resilient portfolio stemming from our decades of accumulated know-how in the credit markets, structured finance as well as arbitrage and securities business.
To give you certainty,
we live by numbers and complexity.
The complexity is for us not only a concept, it’s also a measure of vitality, sophistication and intricacy from a general perspective. Ultimately, it reflects the culture of a country. Countries with higher complexity may be viewed as more ‘advanced’ (not technologically!) but also less governable. Implementing reforms in such countries may be more difficult and it can affect stock-exchanges and fixed income performances.
Therefore our research, examining thoroughly and without preconceptions the data provided by different real-time data providers, have revealed that there are decisively positive feedback in the financial markets and that there is certainly a long-term dependence on an event that, happening now in a given location, affects every other event anywhere else, and in the far future.
Thence we provides our investors with customising investment portfolios characterised by high resilience and low complexity, capturing the impact of sustainability and mitigating the complexity of global markets and economy.
We do this by filtering out market noise identifying what can cause complexity and fragility so to isolate what matters most, and by implementing alternative ideas that, aware of interdependence and interconnection of numerous factors relating to the economic and financial modern world are bringing into question the idea of some form of stability.
Our investment strategy is based on a broad array of fixed income sectors and securities, having an average portfolio credit rating ranging from A and up that share certain characteristics which allow easy placement with third parties, in short getting easy the settlement of securities on the market, so offering strong risk-return tradeoff potential. It explains why so many HNWIs seek our expertise in meeting their financial challenges.
Strong interconnection of current financial market, created especially in recent years by excessive derivatives trade [at H1_2021 – Data Bank for International Settlements – Global OTC derivatives market was worth 598 trillion U$D] and the increase of market participants, pursuing few investment opportunities and using similar strategies, leads the markets to cross the threshold of instability and more frequent and violent changes of prices.
In the last years the placement of medium / long-term bank debentures on the wholesale market has emerged as an opportunity for banks to improve the mismatch of maturities between assets and liabilities and mitigate the dependence on ECB\FED funding.
Bank Debenture Notes are not just attractive for issuers. While Banks with funding or capital needs can look to these notes as a cost saving instruments with lower execution risk than a public deal, investors holding excess cash or with specific needs can buy bank debentures, and do so at increasingly attractive levels. When a bank issues Bank Debenture Notes, the Bank Debenture holder becomes creditors for the bank. In return, the bank pays interest at a fixed and predetermined rate to the Debenture holder. Bank Debenture Note is a form of debt security instrument.
Successful assets managing are built on the knowledge that not all private securities are created equal, and that strong covenants alone do not justify investing in a weak company. This is the reason we have extensive and decades long experience working with Asset Managers, Arrangers, Dealers, Banks (Treasury Offices), Heads of Trading and other financial service providers.
We are also able, due to the accumulated experience and the partnerships undertaken over the years, to structure financial notes and to arrange baskets according to customer needs.
Smart Automation Business
In addition to our specific background we have added in recent years particular expertise in the field of Learning Machine Process, thanks to some partnerships with researchers and IT experts active in the Trading System sector for several years and with collaborations with some Polytechnic Universities.
If we look around with attention and open mind, we magically discover that our lives, in the modern world, are maintained or controlled by computers such as the automobiles, airplanes, and also medical diagnostic equipment we use for health maintenance.
Nevertheless, even nowadays, when we talk about automated Trading Systems, people get scared and remember the huge losses experienced by investors buying and holding securities, stocks, mutual funds quotes, as the market melted down in past years.
Thanks to global partnerships we have merged multiple skills of macro-economic researchers and IT experts, achieving a logical set of instructions (the Trading System) capable of processing tens of millions of information per second based on a set of inputs, supported also by the increased computational capabilities of the new generations of computers.
So using Learning Machine Process we can capture small patterns which no single talented trader or the best experienced group of traders can monitor and even mostly avoid the human being interference, more inclined to emotion and easily influenced.
In our age computers and algorithms have become mainstream in financial markets and we expect this trend to continue and bringing about investors to take greater control of risk and increase profits.
NEW DISRUPTING TECHNOLOGIES
Having many technical collaborators who for several years have been studying and implementing algorithms for asset management for HNWIs or for financial Institution, it has been inevitable switching to the emerging world of technologies related to blockchain in all its aspects and derivations.
We have followed the evolution of the blockchain since 2011 and analyzed and studied the technologies and tools that gravitate around it.
It’s an entire new suite of technologies which allow a network of computers to agree at regular intervals on the true state of a distributed ledger.
These ledgers can contain different types of shared data, such as transaction records, attributes of transactions, credentials, or other pieces of information. The ledger is often secured through a clever mix of cryptography and game theory, and does not require trusted nodes like traditional networks.
The ledger is distributed across many participants in the network — it doesn’t exist in one place. A block could represent transactions and data of many types — currency, digital rights, intellectual property, identity, or property titles, to name a few, simultaneously updated with every fully participating node in this ecosystem.
IMPORTANT: A blockchain is a way to implement a distributed ledger, but not all distributed ledgers necessarily employ blockchains.
What it’s exiting in new technologies is the skill to reduce the cost of verification and the cost of networking. And this is valid for the world of finance (BITCOIN) as well as logistic sectors, the control of a supply chain or a work of art.
This is why we have gained and consolidated a sensitive experience such as to provide advice on a very dynamic world such as that of the Blockchain including Tokenomics and Metaverse development .
We are aware that the universe of people who have the knowledge required to understand and\or invest in tokens, NFTs in a non-speculative nature is very small.
Baumstein Capital was able to build a team for offering our recommendations about new technologies and digital assets:
Tokenomics is the science of the token economy. It covers all aspects involving a coin’s creation, management, and sometimes removal from a network. Our competence and skills regards how distributing coins out to prospective users. Otherwise, the network can exist but no one will be able to use it.
Token is a digital information containing a form of right such as access to a service, ownership of an asset, receipt of a payment or access to registered data of a production chain and it’s digitised and all its information will be integrated into a distributed and immutable register over time in which it will be possible to exchange or archive it.
For example the shopping vouchers, issued by supermarket chains and spendable only in those chains, are Utility Tokens;
And Security Tokens are instead most similar to traditional shares of a company, because their value derives from a tradeable external asset.
It’s important to define the difference between a cryptocurrency and a token. While a cryptocurrency operates independently and uses its own platform, a token is a digital asset built on top of an existing blockchain.
Most ICOs issue tokens built on Ethereum’s ERC20 platform.
NFT: Non Fungible Tokes are digital assets which can neither be replaced nor interchanged because they have unique properties.
Digital Asset – NFT is a digital asset that represents Internet collectibles like art, music, and games with an authentic certificate created by blockchain technology that underlies Cryptocurrency.
Unique – It cannot be forged or otherwise manipulated.
Exchange – NFT exchanges take place with cryptocurrencies such as Bitcoin on specialist sites.
The majority of NFTs reside on the Ethereum cryptocurrency’s blockchain, a distributed public ledger that records transactions.
NFTs are individual tokens with valuable information stored in them. Because they hold a value primarily set by the market and demand, they can be bought and sold just like other physical types of art.
NFTs’ unique data makes it easy to verify and validate their ownership and the transfer of tokens between owners.
We have studied the NFT’s behaviour during these last years and we are convinced that the evolution of NFTs can be compare to that of the internet, in that it’s evolving rapidly with new use cases appearing. We noted that we’re all using the internet and transacting over it now, whether we like it or not. In the early days of Internet 1.0, many people said they weren’t going to use it to transact and interact, but it turned out to be here to stay.
The reader and / or customer has to also understand where the evolution of this asset class is going before you can invest intelligently in the space. Otherwise, you’re just speculating. While NFTs have many different uses, the press is currently focused on the use case for music and art.
However, we are aware of NFTs being a lot more than digital ownership of art and music. We can think about financial uses like for mortgages, use cases in insurance, and derivatives. NFTs offer a transactional record of ownership. NFTs also have use cases in e-gaming and the metaverse, which represents new “play-to-earn world as opposed to the old pay-to-play model.”
… And getting to METAVERSE and NFT as a form of property
We believe in the new and emerging digital world so much that we have invested directly in it.
What is Metaverse ? Lot of people considers vague and complex the term “metaverse”, but try to mentally replace the phrase “the metaverse” in a sentence with “cyberspace. ”Ninety percent of the time, the meaning won’t substantially change. That’s because the term doesn’t really refer to any one specific type of technology, but rather a broad (and often speculative) shift in how we interact with technology. And it’s entirely possible that the term itself will eventually become just as antiquated, even as the specific technology it once described becomes commonplace.”[wired.com]
Broadly speaking, the technologies companies refer to when they talk about “the metaverse” can include virtual reality—characterized by persistent virtual worlds that continue to exist even when you’re not playing—as well as augmented reality that combines aspects of the digital and physical worlds. However, it doesn’t require that those spaces be exclusively accessed via VR or AR. Many virtual worlds which can be accessed through PCs, game consoles and even phones, have started referring to themselves as “the metaverse.”
Matthew Ball, the Managing Partner of EpyllionCo, has recently attempted a definition: “The Metaverse is a massively scaled and interoperable network of real-time rendered 3D virtual worlds, which can be experienced synchronously and persistently by an effectively unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communications, and payments.
Whether or not the next phase of the internet truly reaches a Metaverse status, the commercial viability of virtual reality (VR) and augmented reality (AR) have already been demonstrated through several avenues, to which all of us have likely already been exposed.
Many companies are taking chances to be involved in this latest iteration of the internet by creating VR and AR experiences that are intended to be fun and engaging, helping drive and continue adoption by technology users of all ages.
We think the Metaverse is a type of successor to the Internet that we know today, digestibly comparing it to how the mobile Internet built upon and expanded the capabilities of the Internet of the 1990s and early 2000s.
Our studies and researches demonstrate there are companies that are, compared to the technology giants, just starting up in various categories:
many of them flying under the radar and many still privately owned. This growing basket of lesser-known companies provides a unique opportunity for investors to invest early in a potentially Metaverse-defining company.
And finally NFT as a form of property of object of any kind from real estate houses etc… to pictures or even a company ( new form of company like DAO) in this way we can evolve the concept of shares or build up a new form of property share where every Digital Owner got his share of the object and can decide with his right to vote, for examples to do various things with it like selling, leasing or transforming.
Our smart area of competence, thanks also to some important partnerships, includes:
Life is a challenge, charity too
With wealth comes responsibility. The responsibility of deploying assets efficiently to charity is challenging. With an understanding of your preferences, we will develop strategies to ensure your assets are utilised in the way you intend.
We are already operating in Brasil on our own regarding Child Welfare. We are fully convinced the provision of childcare is of increasing importance in ensuring genuine equality of opportunity.
We are now evaluating support operations in the medical area in some African countries that some of our consultants have directly known for having exercised in the context of “Medecins sans Frontieres”.
We leave nothing to chance
Our investment strategy is based on a broad array of fixed income sectors and securities, having an average portfolio credit rating ranging from A and up, customising client’s portfolio and defining alternative not classical research-driven strategies.
a) macro-economic analyses and of individual country as a whole;
b) analysis of some asset classes in particular, such as gold products;
c) studies on international negotiation outside the swift system;
d) financing through sovereign guarantees for major infrastructure;
e) Structuring distinctive notes and financial solutions for HNWIs – Family Offices – Qualified Investors.
* for QUALIFIED INVESTORS - HNWIs only
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