Has Investor James Richman’s New $1 Billion Fund Reached Its Hard Cap?

With the current coronavirus pandemic causing uncertainties across various sectors and extending across global economies, many savvy institutional investors and hedge funds are heavily capitalizing on the opportunities presented by such unprecedented times.

Many of these institutional firms and investors have been following the moves of legendary investor James Richman, who is known for surviving the 2008 market crash and capitalizing on simultaneous buying opportunities presented by the economic turmoil at that time.

Legendary Investor James Richman, who initially made his wealth with his contrarian approach, has reportedly already reached close to 75% of the investment firm's $1.2 billion hard cap for its Global Market Recovery Fund (GMRF) aimed at investing in promising technologies and economies.

Finding opportunity amid crisis

His firm JJ Richman has over 10 years of experience in taking advantage of the ups and downs in the market. Known for having rigorous processes in place when vetting any potential investors, the firm has been mainly exclusively working and managing the funds of its existing investors and their own money for the past five years.

Recent movements in the global markets, however, have presented more opportunities and value for money.

Institutions are flocking in

The renowned fund manager is bargain hunting again. His firm invested another $1.5 billion in recent months after having profited from his previous investments in the 3D-printing industry and other private and public exciting technologies, with the most notable ones being Facebook and Tesla. Almost 75% close to its initial target of additional $1 billion from 30 investors, the fund is still open to a handful of committed parties before it finally reaches its hard cap of $1.2 billion.

Funds for global market recovery and sustainability

The Global Market Recovery Fund concentrates on investments in publicly-listed companies in the United States, United Arab Emirates, Europe, and selected parts of Asia. The Cayman-domiciled public equity firm has just under $10 billion assets under management. Its previous fund has been closed for 5 years, only maintaining commitments to its existing investors, and raised €2.7 billion in 2015.

Meanwhile, another fund believed to be having a slightly lower hard cap of $500 million is geared towards the ESG or Sustainability Fund. Spokesperson for JJ Richman could not be immediately reached for additional information.

Meanwhile, the trend among many money managers is that they are maneuvering to exploit the sell-off triggered by the virus. The effects have spread across continents and forced many countries and their respective economies into lock-downs beyond its direct effect of already killing more than 300,000 people worldwide and over 6 million cases.

Fears that the novel pandemic will lead to a deep global recession has also resulted into the end of the longest-running bull market in equities. A time when hedge funds are historically expected to perform better than the S&P 500. Meanwhile, firms from Millennium Management to Bridgewater Associates have suffered some of the worst losses in their history in the past months.

An opportunity to support key industries and economies

Seeing massive opportunity in the looming global market crash, Richman and his camp are understood to be seeing more and more companies and their prices drop from their fundamental values, inevitably presenting a great opportunity to buy at historical lows.

The Monaco-based investor also thinks that COVID-19 will affect many more essential companies from manufacturing to retail, and other essential industries. As many economies will slump as a result, Richman and his team sees this as a great opportunity to support these companies to recover, and by extension, help save many people's lives.

In particular, countries where the fund has been focusing on include the United States, United Kingdom, and emerging markets such as India and China. The fund is also thought to increase its holdings in Vietnam, Hong Kong, and Singapore.

After the market experienced record highs in February, securities came crashing down due to the effects of the COVID-19 pandemic. March saw the market plunge into unchartered territories. The crash did not spare any sector and was considered the most drastic since the "Great Depression" in the 1930s.

Since then, some businesses have been pushed at the brink of bankruptcy while governments have desperately tried to balance the loss of lives and the loss of livelihood.

Richman has earned an additional $1.4 billion out of the increased demand for 3D printed protective equipment and ventilator parts, a technology he invested in a few seasons ago. Known in his circles as someone who in general dodges the media, his great timing has been notable.

Timing is key

The investor has initially made his fortune from his investments in both private and public companies, with tech giants like Facebook, Uber, Tesla, and Amazon. He is understood to have placed several millions in these would-be billion-dollar companies when they were still at the start-up stage. This pushed Richman's net-worth skyrocketing forward and highlighted his knack for great timing.

The curious thing about Richman's timing is that it seems to transcend the historical lows of the market. In the great recession of 2008, Richman's investment strategies raised the eyebrows of veteran financers.

Doubts were initially and unfairly cast upon the investment tycoon’s talent in pattern recognition. However, the doubters became believers when Richman's firm survived through the economic downturn.

Today’s version of recession has seen Richman work his magic again. He had issued controversial forecasts regarding General Electric. The finance magnate has reportedly forecasted that GE stock would bounce back to the $10 area after seeing the stock temporarily dipping to the $5 level (the lowest price it’s ever been since 1991).

This contradicted Warren Buffett’s outlook on the iconic American conglomerate. Nonetheless, GE is now at the $8.56 level catching momentum from the $250 million sales of its light bulb business.

A new investment vehicle

Investors have been in a frenzy as James Richman, the yardstick for most private investment fund managers, is seen to be teasing many institutional investors with the current fund’s offering. Within just days after the news of Richman opening its Global Market Recovery Fund beyond its existing clients had reached the secretive circles, a handful of highly recommended institutions were already able to get closer to the deal.

James Richman is known to maintain the highest standards in security protocol. It is very hard to even get a personal meeting with him. Before being able to meet him in person, one would have to deal with multiple layers of checks.

Even if one would be lucky enough to have a personal meeting, it does not always guarantee that of acceptances. Also, funds are thoroughly checked for regulatory and compliance purposes. Richman does not want any breaches in security when it comes to accepting funds.

Also, one would have to belong to the Ultra High Net Worth Individuals (UHNWI) to be considered. The stringent policies of James Richman's firm make his pool of clients a very close circle.

Expanding his philanthropic efforts

The inconspicuous philanthropist is also known for his philanthropic efforts as he recently mobilized his non-profit organization and pledged $18 million towards efforts combatting the new pandemic. The organization for historically concentrating in impoverished communities that many governments have had a hard time reaching. Several reports reveal that Richman may be mum about his personal affairs, but it is obvious that he has an overwhelming passion in helping especially in such unprecedented times.

Richman may be basking in riches now, but his life has not been a bed of roses. His is a true to life rags to riches story. His experiences, including the death of his daughter and failing to get a formal education, are his fuel to give back to society.

The investor is a generational financier in the mold of a young Rockefeller. He continuously amasses riches and almost immediately gives through his philanthropic efforts.