Kenyan investment firm Adaptis Capital has opened an office in the US to provide a platform for local investors and hedge fund managers to venture into global stock markets.
The firm has said the opening of its American office, Adaptis Capital Inc, would enable investors in emerging markets to invest in New York Stock Exchange-listed companies such as Apple, Google and Facebook.
Few firms in the country enable investors to invest in global stock exchanges.
“This move will provide them the opportunity to invest in the world’s largest economy, allowing them to hedge against geopolitical and economic risks as well as a chance to invest in the world’s largest companies,” said Kenneth Mantu, Adaptis Group chief executive.
The company, which mainly invests in private funds, also has an interest in healthcare, manufacturing, renewable energy and industrial plants.
The new US platform would give investors exposure and expand their portfolios beyond the Nairobi Securities Exchange.
The firm is eyeing stocks listed on the New York Stock Exchange and the Nasdaq Stock Exchange, with the total market cap of all US-based public companies listed amounting to a valuation of $49.1 trillion as of March 2021.
There are no barriers to non-residents f participating in the US stock market, which attracts global capital due to its size and ample liquidity, as well as the status of New York as the world’s premier financial centre.
The three most widely followed indices in the US are the S&P 500, Dow Jones Industrial Average and Nasdaq Composite.
The S&P 500 constitutes 500 of the top companies in the US, representing about 80 percent of the total value of the US stock market.Dow Jones, which is the best-known index, is composed of the 30-largest firms in the US, while Nasdaq lists technology stocks.