Contributed by: Show Editorial Team
-Delivering 12-15% in annual returns
-Banks are underserving real estate backed loans
INTERVIEW TRANSCRIPTS: Avi Rapaport, Founder of Rapaport Flagship interview with Matt Bird
Matt Bird (Show Host, Traders Network Show):00:00
Welcome back to the Traders Network Show. I’m your host Matt Bird. We’re broadcasting worldwide on Equities.com. We’re here in Davos, Switzerland at the World Economic Forum 2019 and my next guest is Avi Rapaport, who is the Founder of Rapaport Flagship, a boutique fund management and company delivering 12 to 15% in annual returns. In an industry where the standard is right now is about three to five. You’re doing some pretty unique things. Why don’t you why don’t you tell our viewers a little bit about this and you know, our, our network and our audience are for the most part retail investors. So, tell us a little about how you’re doing this.
Avi Rapaport (Founder, Rapaport Flagship):00:59
That’s exactly right. You know, there are private loan markets out there where you can get access to personal loans or real estate back loans. These are markets which the banks are underserving, which are not well enough capitalized by institutional investors. And you can get, especially if you’re investing outside of the United States, you can get your 12 you’re 1314 and 15% diversified over a very wide base of borrowers, maybe 100,000 individual borrowers all over the world and maybe 1000 real estate deals in construction, which we were financing. Granted, it’s riskier than mortgages.
Matt Bird (Show Host, Traders Network Show): 01:25
So as a fund, you put your own money to work and you do, you do, do co-investing with, with other investors and you charge my, I think you, I read in the notes about 1% for the transaction fee? So, if you’re generating 13 or 14% or 12% returns, you’re only charging a point to manage the transactions in the investment management money. That’s terrific. How long have you been doing this for?
Avi Rapaport (Founder, Rapaport Flagship):01:58
We take 1% management fee and 10% or foreman’s fee because the two and 20 is outrageous. And this is a long-term business. Like you said, all of my money’s invested. This is not a gimmick. Fun where I take strangers, money and invest in some buzzword. This is really my investment portfolio. All of it.
Matt Bird (Show Host, Traders Network Show): 02:12
So, yeah. Is this your first time in Davos?
Avi Rapaport (Founder, Rapaport Flagship):02:14
No, I live in Zurich.
Matt Bird (Show Host, Traders Network Show): 02:15
Oh, so this is the puddle jump for you? Or should I say a train ride. Last year to this year, what do you think the big differences are at and you’d be been around? I’ve seen you around. What’s, what’s leading to this? What we’re seeing right now in the street.
Avi Rapaport (Founder, Rapaport Flagship):02:31
If you’re talking about public, public equities and bonds, then it’s the same old. They are driven by supply and demand and oftentimes they made the, I like to maybe exaggerate a little bit the fluctuations that you see.
Matt Bird (Show Host, Traders Network Show): 02:46
Well, I don’t know if media ever exaggerates on anything!
Avi Rapaport (Founder, Rapaport Flagship):02:53
Buy and hold, if you buy and hold your equities and your bonds, if you’re diversified over enough things, you can just ride it out, then not look at it.
Matt Bird (Show Host, Traders Network Show):02:59
Well, listen, do you have a website you can tell viewers about?
Avi Rapaport (Founder, Rapaport Flagship): 03:03
Yeah. Viewers, please check out our website, www.rapflag.com. I’m dr. Avi Rapaport. Thank you.
Matt Bird (Show Host, Traders Network Show): 03:12
And we’ll be right back after this commercial break. Don’t go away, we’ll be right back.
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