If your investment portfolio is in solid shape, meaning it’s broadly diversified and allocated in line with your particular financial circumstances, but you’re interested in maximizing sources of differentiated returns, alternative assets make for a compelling option.
Alternative assets, or asset classes besides stocks, bonds and cash, are widely sought after for diversification purposes, enhancing the probability of registering a gain regardless of market environment. Popular choices include infrastructure, private credit, private real estate, cryptocurrency, art, collectibles, commodities and venture capital, each of which carries idiosyncratic risks that shield it from the push and pull of market beta.
While investors can buy shares in alternative asset funds and benefit from active management, these often come at a hefty annual fee, making high-quality public companies building alternative asset portfolios the more prospective option.
Here are two promising stocks to consider, active in real estate and cryptocurrency, that present well-rounded cases for a long-term allocation.
Parvis Invest
Our first stock to professionalize your alternative asset exposure is Parvis Invest, a platform providing illiquid, institutional-quality real estate opportunities in North America to everyday investors through funds and direct investments.
The company ended calendar 2024 with 320 per cent year-over-year (YoY) platform growth and 2,835 per cent YoY transaction volume growth, while onboarding 40 new issuers, facilitating a 523 per cent increase in net revenue between Q1-Q2 FY25 and Q1-Q2 FY24.
Growth drivers in 2025 include the launch of the Parvis Direct Access Fund, offering diversification through vetted private real estate investments, and the ongoing ramp-up of the company’s secondary market to provide liquidity in the traditionally illiquid asset class, leading Parvis’ made-to-measure management team to predict 8.3 times YoY revenue growth in fiscal 2025 to approximately $1.5 million.
Parvis Invest stock (TSXV:PVIS) has given back 25 per cent year-over-year, last trading at C$0.09, with investors likely waiting for the business’ scale to reduce costs and expedite its path to profitability before stepping in from the sidelines.
David Michaud, Parvis’ founder and chief executive officer (CEO), joined Lyndsay Malchuk to discuss the rationale behind the Parvis Direct Access Fund. Watch the interview here.
Fineqia International
Our second alternative asset stock to broaden your return horizons is Fineqia International, an operation dedicated to building and acquiring institutional-grade products, services and assets in the blockchain and cryptocurrency space.
Fineqia’s U.K. subsidiary serves as an advisor to the Digital Asset Blockchain Infrastructure Actively Managed Certificate in Europe.
Fineqia’s European subsidiary issues Exchange Traded Notes (ETN) in the European Union, as highlighted by the recent listing of the Fineqia FTSE Cardano Enhanced Yield ETN, the world’s first ETN to earn yield from its assets through decentralized finance. Cardano is a blockchain network built on peer-reviewed research and environmental sustainability with world-changing ambitions. It’s cryptocurrency, ADA, is a top-10 in terms of market capitalization at just under C$50 billion, according to data from Coin Market Cap at the time of writing.
The company also holds a direct investment portfolio with healthy allocations to blockchain-based gaming and services, as well as an indirect portfolio active across network infrastructure, decentralized applications and crypto tokens, affording you a multi-pronged approach to harvesting potential returns backed by a management team with venture capital, financial markets and crypto backgrounds to hang your conviction on.
With crypto growing from a total market capitalization of about C$10 billion in 2016 to over C$5 trillion to date, there is little doubt that, regardless of its final form, the asset class will be with us for the long haul, making it a sound financial move to give it your full due diligence, contingent on your financial plan.
Considering how nascent and inefficient the crypto market is, aligning your portfolio with high-quality companies undergoing poor stock performance, despite the broader asset class’s exponential gains, seems like a rational way to increase the probability of an outsized return.
Fineqia stock (CSE:FNQ) fits the bill, generating a zero-per-cent return since 2016, valuing the underlying business at a mere C$16.51 million in market cap with no upside priced in. As the company releases more ETNs and accumulates assets, look for the stock price to recognize this, increasing the market’s awareness of each component on the balance sheet.
Bundeep Rangar, Fineqia’s CEO, spoke with Lyndsay Malchuk to shed light on the company appointing Wave Digital Assets as an investment advisor. Watch the interview here.
Join the discussion: Find out what everybody’s saying about these alternative asset stocks on the Parvis Invest Inc. and Fineqia International Inc. Bullboards and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of Parvis Invest Inc. and Fineqia International Inc., please see full disclaimer here.
(Top image, generated by AI: Adobe Stock)
