Amid growing macroeconomic challenges, a key factor in making investment decisions is ensuring that investment strategies rely on fundamentals in high-uncertainty scenarios, according to Jos? Feliciano, co-founder of the investment firm Clearlake Capital Group.

Feliciano, also known as the owner of the London-based Chelsea Football Club, shared his insights on investment strategies and macroeconomic conditions during a discussion with Jenny Chu, the chair of The Korea Conference, in New York on Tuesday. Their discussion was part of the Global Financial Leaders Forum 2023, organized by Maeil Business Newspaper.

Considering these challenges, Feliciano emphasized the importance of an “all-weather” approach to investment, adding that leverage can be a friend during good times but a formidable enemy during bad times.

When analyzing the current macroeconomic climate, he expressed the belief that alternative investments and private equity hold more promise than traditional stocks and bonds. He was cautious in offering comments on the Israel-Palestine conflict at its initial stage but projected that it could have negative consequences for the global economy due to increased uncertainty. He was also pessimistic about further policy rate hikes by the U.S. Federal Reserve in 2023 given the heightened uncertainty and predicted the potential for prolonged inflation driven by extended high oil prices triggered by the conflict.

In terms of his views on macroeconomics, Feliciano projected that the current state of “Goldilocks,” where economic expansion does not coincide with inflation, could fade soon. He cited unexpected geopolitical risks or other external factors as triggers for an economic downturn, implying that there could be potential negative impacts from the conflicts in Europe and the Middle East.

Feliciano is a prominent figure in the global investment scene, with assets totaling approximately $43 billion. Born in Puerto Rico, he moved to the United States at the age of 17 and aspired to be an engineer when he was younger, which led him to study mechanical and aerospace engineering at Princeton University. The founder of Clearlake Capital, which manages assets worth around $70 billion, co-acquired English football club Chelsea in May 2022. While mentioning the growing trend of private equity funds investing in sports businesses, he said the sector’s appeal is the stable revenues primarily driven by multi-year contracts, with only 5 to 10 percent of revenues being unpredictable.

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