FWP Market Update — May 2021
Market Update
As the US vaccinates its teens and drops its masks, the FWP team got together for an offsite at the offices of our JV partner, Titan Advisors, followed by a backyard BBQ at our CIO’s house. We sat down with the Titan team to discuss ESG trends in the hedge fund space and the range of sustainability practices taken up by managers. We’re seeing everything from thematic climate strategies, to deep engagement to companies, all the way to weak applications of ESG scores. The dispersion in the quality of ESG integration is widening in long/short equity, activist, credit, and quant strategies alike. As we engage more and more with the managers in the Eclipse portfolio (FWP/Titan’s managed hedge fund solution), we see the potential impact increasing day by day.
Over wild salmon and Flying Embers hard kombucha, we had a chance to review the FWP research pipeline, especially in the area of sustainable food & agriculture and healthcare. We discussed a cell-based meat company focused on producing pork fat in a lab, one of a growing list of products that mix plant-based and cell-based ingredients to create flavorful, more sustainable versions of people’s favorite foods. In the healthcare space, we’re tracking two funds with general partners who know a lot about science and medicine, but don’t have much experience in finance or investment. We’re following them closely, as we find there are very few managers focused on companies addressing the healthcare needs of underserved populations. The team continues to work on diligence memos for an alternative protein fund, an affordable housing fund, and a property/construction fund. We’ll have full investment diligence and recommendations on those funds available to our clients in the coming weeks.
Ultimately, we see the silver lining of social distancing as being an intentional commitment to stay connected in our common goal of a more sustainable economy, environment and society. Please reach out to info@aflatworld.com for more information — we welcome the opportunity to connect!
Investment Highlights
Cue Health Funding Update
Cue Health recently raised $235m from investors including Perceptive Advisors, MSD Capital, Koch Strategic Platforms, Johnson & Johnson Innovation, Decheng Capital, CAVU Ventures, and ACME Capital. This fresh capital will be used to accelerate Cue’s growth. Ayub Khattak, co-founder and CEO said, “It’s clear that the world needs to make the move to Healthcare 2.0, a decentralized, responsible, digital-first and consumer-centric model that makes it easy to access important health information and act on it. We believe distributed diagnostics is the key missing piece to bridge the physical to virtual care continuum”.
Please feel free to reach out to dbrooks@flatworldpartners.com for more information.
New BlueNalu Asian Partnerships
BlueNalu has signed Memorandums of Understanding (MOUs) with two leading seafood providers in Asia — Thai Union, a global seafood producer, and Mitsubishi Corporation, a globally integrated business enterprise. Both agreements are designed to assess market development strategies for BlueNalu’s cell-cultured seafood specifically in Asia, where there is high demand for quality seafood and the potential for diminishing supply to feed its population during the coming years. These collaborations represent a mutual interest in the commercialization of cell-cultured seafood in Asia and a commitment to sustainable seafood solutions to meet rising demand.
For further information don’t hesitate to contact hamish@flatworldpartners.com.
Impact News
China is in the midst of transforming its original oil boom town into a renewable energy oasis. Much like the California gold rush, the city of Yumen used to be an entirely oil-based economy drawing workers from all over the country in search of fortune. However, as reserves began to deplete, the government stepped in and removed all the old drilling infrastructure and are replacing them with solar panels and wind turbines on a mass scale. It could be said that the impetus for such a move on behalf of the government was economically driven rather than environmental, but regardless of the primary motive, the fact remains that China is utilizing renewable energy infrastructure to bolster economic growth, in which climate action translates into profit. We at Flat World view this symbiosis as essential to addressing climate change.
Upcoming Events
NEXT NORMAL NOW: RE-IMAGINING CAPITALISM FOR OUR FUTURE
SECOND CONVENING ON CLIMATE ACTION
June 16, 2021 | 9:00–11:45am EDT | Zoom
The GIIN is igniting a conversation around re-imagining capitalism and inviting you to join this year’s signature series of events, Next Normal Now.
The GIIN’s Next Normal Now is an inspiring series of virtual convenings, which are designed to reveal systemic changes unfolding in the here and now. Learn from the perspectives of those creating this motivational change starting from the spring of 2021. Engage with leaders who are disrupting the status quo and innovators who are pushing our economic future not just toward a new normal, but toward the next normal beyond that.
Be a part of this incredible journey as leaders, innovators, investors, and global citizens explore a new vision for our economic future that puts you ahead of the curve. This series will offer vital insights for attendees at any stage of the ‘next normal’ journey and provide inspiration from visionaries painting a picture of their next normal.
RSVP here to receive your zoom registration details.
About Us
Flat World Partners is an impact investment advisory firm that builds competitive, values-aligned portfolios for family offices, multi-family offices, foundations and other institutional investors. A leader in sustainable investing across asset classes, we have deep knowledge of the market and have relationships with top-performing managers and entrepreneurs. FWP can evaluate and optimize investment portfolios for impact including carbon, diversity and other sustainability metrics. We work in a custom fashion to meet the needs of our clients and find the right solutions for their impact goals.
Please feel free to reach out to fwp@aflatworld.com should you have any questions, comments, or just want to connect! We look forward to hearing from you!
Communications from Flat World Partners are intended solely for informational purposes, and should not be construed as investment/trading advice and are not meant to be a solicitation or recommendation to buy, sell, or hold any securities mentioned. Any such offer or solicitation can only be made by means of the delivery of a Confidential Private Placement Memorandum, which contains a description of the significant risks involved in such an investment. All figures are estimated and unaudited unless otherwise noted. Past performance is not necessarily indicative of future results.
Flat World Partners is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority or any state securities regulatory authority. At present, Flat World Partners is exempt from registration as an investment adviser in the state of New York.
