What's the most interesting investment "niche" you've seen?

There are many areas of investing that work on a large scale - billion-dollar PE funds, public equity funds, multi-million-dollar real estate investment firms...

But how about some of the more niche and unusual areas of "investing" in the world where people still manage to make a killing? What's the most interesting/unusual/lucrative space you've encountered?

I think one my favorites would be the "quant" approach to sports betting - there's a British firm called "Starlizard" which does quant-based betting on Asian betting markets with different rules, and there's a great article by Bloomberg on how someone built an algorithm that can predict the outcome of horse races. Another two examples that I found interesting, but aren't quite as "niche" are litigation finance (with potentially significant asymmetric outcomes) and the interesting world of German closed-end funds that bought airplanes over the recent decade (and are now stuck with them - nobody wants big planes anymore...).

Would love to hear what some of you have seen and heard of!

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Comments (3)

Oct 22, 2018

Really interesting topic you've posed here! Honestly not sure how cool this is but I know of some interesting roles stemming from ABF where collateral for loans comes in the form of physical objects like vintage cars or even (live!) animals. I would imagine those in charge of collecting these items when people don't pay would have some interesting stories. Imagine going to collect prized race horses from an owner who didn't fulfill a loan. Wish I could provide more but wanted to give my 2 cents! Hope you get some more interesting responses here!

Oct 22, 2018

The most interesting investment method I read about was Warren Buffet's strategy of buying low-cost index funds as well as employing dollar-cost-averaging.

Oct 21, 2018