Back on September 2, Zoe Hughes of Private Equity Real Estate magazine reported that private international real estate investment firm Colony Capital, LLC, is looking to diversify into energy and infrastructure. Hughes wrote:

Colony Capital is considering long-term plays in the energy and infrastructure fields as part of a bid to diversify the private equity real estate firm’s brand, according to president Richard Saltzman.

In an exclusive interview published in the September issue of PERE magazine, Saltzman spoke about the firm’s strategic push, revealing energy and infrastructure were two spaces that could have “deep opportunities” for the firm in the future. He also spoke about Colony’s opportunistic investments, notably in the distressed arena.

Fukuoka Dome Baseball Stadium
Acquired by Colony Capital in 2004

Source:

“Colony gears up for diversification drive”
Zoe Hughes
Private Equity Real Estate, September 2, 2008

Well-known commodities investor Jim Rogers is undeterred by the recent selloff in hard assets. Bloomberg’s Rattaphol Onsanit wrote this morning:

Jim Rogers, who in April 2006 correctly predicted oil would reach $100 a barrel and gold $1,000 an ounce, said a tumble in commodities from records represented a temporary reverse in a long-term rally.

“I don’t see that it’s the end of the bull market,” the chairman of Rogers Holdings, said in an interview in Bangkok before speaking at an investor conference later today. “Until either a lot of supply comes on stream or the economy collapses, the bull market will continue,” he said.

The co-founder of the legendary Quantum Fund added:

“I am contemplating whether it’s time to get involved in base metals again,” Rogers, 65, said today. “I haven’t bought any for awhile.”

Onsanit pointed out other areas Rogers felt may have potential. He wrote:

Rogers, who moved to Singapore after selling his New York townhouse last year, said he was still optimistic about agricultural commodities and China’s economy, favoring the tourism, education, infrastructure, and power generation sectors.

Beijing Opera

George Iype of India’s CommodityOnline.com shed some more light on Jim Rogers’ latest investment outlook. Iype wrote earlier today:

The high oil prices and the pull back in some commodity prices on recession fears have not dampened Rogers’ enthusiasm for resources investments. “I am very bullish on metals and precious metals. Crude oil price will continue to rise, because there is a major demand-supply mismatch. Those who blame speculators for high oil prices do not know how the Futures market and oil market operate. Rogers is also upbeat on agricultural commodities. “I am bullish on opportunities in the agricultural commodities market. I am investing there now. The secular bull market in commodities will continue to go on now for some years,” he adds.

Sources:

“Jim Rogers Says Commodities Will Rebound After Drop (Update1)”
Rattaphol Onsanit
Bloomberg, August 21, 2008

“Why Jim Rogers is bullish on commodities”
George Iype
CommodityOnline (India), August 21, 2008

Legendary investor Jim Rogers recently spoke to Commodity Online (India) and shared his investment outlook for China and India. According to the commodities portal this morning:

Global market meltdown, recession and bankruptcy fears and dipping profits of companies are wrecking major economies in the world these days. But ace commodities investor Jim Rogers continues to be very be hot on China.

“China is a country I am very hot on. I believe that Chinese economy will overtake the US economy, and China has the best investment potential in the world today,” Rogers, author of such famous books like Hot Commodities and A Bull in China, told Commodity Online.

The CEO of Rogers Holdings pointed out that three billion people living in Asia, most of them in India and China, will drive demand for commodities in the coming years, and added:

Asia is fuelled by massive investment and growth. And in Asia, China is the hottest destination. So I continue to look for investment opportunities in China.

Photo By Benjamin Earwicker, stock.xchng

However, the former partner of George Soros does not share the same level of optimism for India when talking about its investment potential. He said:

I am excited about India as a travel destination. For an investment proposition in India, I would think twice.

According to Commodities Online’s George Iype, Rogers’ caution stems from existing political/bureaucratic hurdles, such as the Indian government’s decision to prohibit futures trading in specific commodities, as well as serious infrastructure challenges. The Singapore-based investor noted:

Plus, the infrastructure in India continues to be bad compared to China. In China, truck drivers drive at the speed of 70 kilometers per hour. In India, they can drive only at a speed of 20 kilometers because the roads are so bad.

Source:

“Jim Rogers: Hot on China, cold on India”
George Iype
Commodity Online (India), July 18, 2008

Looks like legendary investor George Soros went on a shopping spree in the Indian stock market recently. According to The Economic Times (India) website:

Billionaire global investor George Soros has turned contrarian on the Indian stock market, which has seen stocks being beaten down over the past few weeks. His hedge fund Quantum, which was reported to have posted earnings of over 30% last year, went on a buying spree at a time, when most funds were dumping stocks in a sliding market.

On July 4, Quantum Fund bought a 3.8% equity in Jain Irrigation Systems, and close to 1% of the holding of Jai Corp for a value consideration of Rs 167 crore. Since February, the fund has made investments valued at close to Rs 600 crore, or $ 140 million, in various companies, including Indiabulls Financial Services, Indiabulls Real Estate and Kalindee Rail Nirman.

Bombay Stock Exchange
Mumbai, India

The Times’ Vijay Gurav discussed the Fund’s latest acquisitions in detail. Gurav wrote:

Among his latest acquisitions in India, Mr Soros bought a fresh stake of 3.8% in Jain Irrigation for Rs 121 crore. The stocks were bought at Rs 442.9 per share against the current market price of Rs 483…

Mr Soros also picked up a small stake of 0.9% in Jai Corp at Rs 282 against Friday’s closing of Rs 372. The scrip, in fact, has vaulted 27% in one week, outperforming the market by a wide margin…

Two Indiabulls group companies — Indiabulls Financial Services and Indiabulls Real Estate — are notable examples of Quantum’s recent acquisitions. The fund held 2.2% and 3.6%, respectively, in the two companies as of March 31, 2008. It also owns a 7.1% stake in Kalindee Rail Nirman, of which 6.8% was bought for Rs 32 crore in February.

Source:

“George Soros’ hedge fund Quantum on buying spree”
Vijay Gurav
The Economic Times (India), July 14, 2008

Legendary emerging markets investor Mark Mobius talked about India’s investment outlook in the Business Standard (India) on Friday. According to the publication:

Indian markets will benefit from the robust savings pool and will remain partially insulated from a US slowdown due to the country’s lower export contingency on US, says Mark Mobius, the 71-year-old investment guru and executive chairman of Franklin Templeton Investments.

While China’s export and investment-led growth will lead to overcapacity in many sectors, India will remain shielded in being a domestic consumption-led story.

“India is also expected to record sustained economic growth in the future. The country is a good example of where entrepreneurship has taken hold of the economy, and where the private sector is thriving despite bureaucratic red tape and poor infrastructure”, says Mobius.

So, what is Mobius looking look at these days? According to the Business Standard:

On his best bets among sectors in India and China, he says consumerism remains a major investment theme with higher incomes resulting in greater demand for products and services.

“We maintain a positive view on energy, materials, consumer and infrastructure sectors in these markets. Energy stocks should continue to benefit from greater revenues and earnings as a result of high oil prices and greater global energy demand”, says Mobius.

China and India continue to invest heavily in infrastructure development, which should benefit companies in this sector, he says.

Source:

“India’s markets will benefit from robust savings
pool: Mobius”
Business Standard (India), June 6, 2008