Dear Investor:

First and foremost, we hope everyone is navigating these traumatic times as best as possible and following the appropriate guidelines necessary to keep yourselves and your families safe. Although we are in the financial business, it’s times like these that put things into perspective and remind us of what our top priorities really should be.  Financial stability is a necessity, but our health and happiness and that of our families and friends is what matters most.

We are providing this quarterly report to update you on your investment holdings, as well as discuss how they are being affected by the current economic environment.  We will spare you any predictions about the economy as a whole, as there is no shortage of “expert” opinions floating around that you can access anytime, and in truth only time will tell.  Having said that, Scott and I have been investing for ourselves and others since 1989, and have been through several economic downturns, thus we can provide some valuable insights for those that are interested.

As far as Acuity Partners, we are in the epicenter of the crisis, but are following the advice of the CDC and the State of NY and have been working remotely for the past three weeks or so.  Our ability to do our job and offer our services are in no way impacted by the lack of an office environment.  We are on the phone or conducting Zoom/Skype sessions throughout the day, communicating with each other, clients, company management, property managers (of our RE holdings), and other industry experts to discuss best practices during these times.  You should feel free to call us from 8AM to 8PM, seven days a week, or text/email us anytime.

Our Portfolio. Other than our “Pre-IPO” investments, where we don’t have direct access to management, we are speaking regularly with our “portfolio companies” in order to see how we can offer support and guidance, as well as monitor their progress. For the most part, this level of interaction is no different than our normal course of business.  It goes without saying that some of our investments will be affected more by the pandemic than others. For example, hospitality companies (Airbnb) are being hit harder than companies like NJOY, an e-cigarette company. Although travel is restricted in most parts of the world, the consumption of alcohol and nicotine has actually increased.  We go into more detail on each company in the individual updates available on the InvestNext platform.  To access the portal, please go to our company website, https://acuitypartnersnyc.com/, and click on the “INVESTOR PORTAL” button on the top right of any page.

Opportunities. As investors, we are always analyzing inherently uncertain situations, but never more so than now. Great moments are born from great opportunities and crisis creates many opportunities.  As a result, we do expect to benefit from buying into great companies and properties with excellent long-term growth potential at distressed valuations. For those that can put emotions aside and evaluate opportunities objectively, we should have some interesting deals coming down the road.

Again, our thoughts go out to our Acuity family including our team members, our partners, our service providers, our portfolio companies and you, our investors.

 

Sincerely,

Bob, Scott, and James

 

By NO Comment April 7, 2020

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