Aureus Asset Management, an $8 billion registered investment advisor in Boston, has been recommending alternative investments to clients since its founding 20 years ago. These days the 15-person team, led by President and CEO Thad Davis, is keeping a close eye on the democratization of alts: the extension of things like private equity, hedge funds, and private real estate beyond the institutional and ultrahigh net worth market. "We have seen the market come toward where we have been for a while now, and that gives us some pause," says Davis, whose business serves 120 client families. "Anytime the popularity meter swings, you wonder, how is this going to play out?"
Speaking with Barron's Advisor, Davis, who says he got into the investing business simply to understand it better, discusses three disruptive themes the industry is focusing on: artificial intelligence, blockchain and crypto, and GLP-1 weight-loss drugs. He explains why Aureus (The name refers to a gold coin in ancient Rome.) believes expensive U.S. companies can be worth the cost. And he explains what he learned when a computer program he had built to find and buy securities flopped. More>
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