The following article provides an annual update for year-end 2020 and an overview of the Kingsbridge Alternative Strategies Fund (KASF), which invests exclusively in Home Equity Contracts (HECs)   We begin by providing the latest update on the Fund’s performance as of December 31st, 2020, including the net returns generated, as well as the growth of the Fund’s portfolio in terms of both the number of active HECs and the Fund’s assets under management (AUM). We explain why HECs have continued to perform well for investors in 2020 despite the coronavirus pandemic, and highlight the following investment attributes: Rising [...]

The impact on Home Equity Contracts and US Residential Real Estate Executive Summary The Kingsbridge Alternative Strategies Fund, LP offers investors the opportunity to participate in the innovative emerging investment asset class of Home Equity Contracts. Home Equity Contracts are structured residential real estate option purchase contracts, with protected downside participation and accelerated upside participation, that are secured by a performance deed of trust on U.S. Residential Real Estate. The following article explains how the coronavirus is currently impacting demand for Home Equity Contracts, as well as the wider US housing market, and how they are likely to be [...]

Although now commanding strong growth across the US, Home Equity Contracts were originally offered in the California housing market. As such, much of this article is guided by the current state of applicable California law and US Bankruptcy law. But it does not constitute a legal opinion of any sort and may not be relied upon as such. Also, it should be noted that different laws and procedures exist for different states, especially with regards to judicial foreclosures and non-judicial foreclosures. If you are interested in Home Equity Contracts and are seeking a more detailed analysis, we recommend that [...]

Executive Summary This article explains why small funds consistently outperform large ones. Our views are principally based on existing research that examines the relationship between fund size and performance. Given our own particular focus on alternative investments, moreover, much of this research relates specifically to the performance of hedge funds. We begin by reiterating what much of the research states – namely, that small funds consistently outperform large funds within the hedge fund space. We include more recent, comprehensive studies to support this point. We then give some of the key reasons for this trend. We first identify the [...]

 Why Advisors Should Recommend Home Equity Contracts If the challenges of the investment advisory business weren't significant enough – managing client expectations, retaining clients, growing assets under management, remaining relevant in a crowded space – then doing all of this in a low return environment will likely only complicate matters. According to the IMF, the global economy is in a "synchronized slowdown" with growth in advanced economies projected to ease to just 1.7% in 2020.[i]  More concerning is that discussion of lower capital market expectations is widespread across Wall Street.  And this has called into question the reliability of [...]

Most Americans dream about owning 100% of their home. But what about owning less than 100% - say, 70%, with the remainder freed up as cash to use for life’s many expenses? With a new, game-changing home equity financing solution that enables this kind of flexibility, many homeowners across the country are now breathing a huge sigh of relief, as equity that was once tied up in their homes has now become accessible. And perhaps most attractive of all, they don’t incur any additional debt in the process. No end in sight for “house rich, cash poor” homeowners Home [...]