By Tigris Asset Management | May 2025
In today’s volatile global environment, figuring out where to invest in 2025 is no longer about simple diversification. Investors need a sharp, forward-looking approach that captures opportunity, protects against downside, and reflects the new macroeconomic regime.
At Tigris Asset Management, we build positive alpha portfolios — strategies designed to deliver not just passive exposure, but risk-adjusted outperformance. Here’s how we think about asset allocation in 2025, and where we’re putting capital to work.
The Market Climate: A Snapshot of 2025
We’re deep into a “higher-for-longer” interest rate regime. While inflation in goods is easing, services inflation remains sticky. Central banks are treading carefully, and any rate cuts may come only late in the year.
Meanwhile, macro forces continue to evolve:
- Geopolitical fragmentation
- Trade protectionism
- A historic AI-driven capex boom led by U.S. technology
These forces shape how and where we invest in 2025.
| Theme | Market Implication | Investment Response |
|---|---|---|
| High interest rates | Traditional bonds under pressure | Short-duration and floating-rate credit |
| AI investment boom | Clear winners in semis/infrastructure | Focused tech exposure, not broad indexes |
| Supply chain shifts | EM/China face structural headwinds | Underweight EM; overweight U.S./developed |
| Soft landing | Slower growth, less urgency for risk | Preserve flexibility; limit duration |
Our Investment Framework for 2025
We organize our allocation around three core strategic buckets — balancing growth, income, and optionality.
High-Conviction Core
These are the foundational exposures offering strong long-term risk-adjusted returns.
- Private Credit (30%)
With 10–14% yields and real collateral, this is our portfolio’s stable income engine. We target senior secured credit and direct lending deals with covenant protections. - AI Infrastructure Equities (25%)
We focus on AI, datacenter players, and Pre-IPO AI companies with asymmetric upside. - Short-Duration Credit (15%)
In a world of uncertain rates, we use floating-rate notes and 1–3 year structured debt yielding 6–7% net.
Alternative & Tactical Positions
This sleeve adds opportunistic exposure and risk hedging tools.
- Pre-IPO Tech (10%)
Micro-cap, profitable tech names on the IPO runway offer explosive alpha. - Volatility Overlay (10%)
We use structured products, options, or long/short funds to hedge tail risk, particularly in geopolitically sensitive quarters. - Gold & Hard Assets (10%)
In an era of fiat debasement, we keep exposure to gold, tokenized real assets, and inflation-resistant infrastructure.
What We Avoid in 2025
Not all “safe income” is truly safe — or smart.
- Leveraged income funds (e.g., covered call ETFs) suffer from capped upside and poor drawdown convexity.
- Long-duration government bonds remain vulnerable as real yields stay negative.
- Broad EM/China exposure faces capital outflows, weak earnings, and poor FX stability.
This is not the time for passive indexing into crowded, underperforming spaces.
Our Model Portfolio – May 2025
Here’s how we translate conviction into allocation:
| Strategy | Weight | Rationale |
|---|---|---|
| Private Credit | 30% | High yield + collateral-backed security |
| AI Equities | 25% | Long-term growth leadership |
| Short-Duration Credit | 15% | Yield + rate stability |
| Pre-IPO Tech | 10% | Early-stage alpha exposure |
| Gold / Real Assets | 10% | Inflation and volatility hedge |
| Tactical Overlay | 10% | Hedging and flexibility tools |
The result is a portfolio with income, growth, and resilience — built for the actual economy we face in 2025, not the theoretical 60/40 model of the past.
Conclusion: Optionality Over Optimism
Where to invest in 2025 is not a question of market timing — it’s about positioning for adaptability.
The old rules don’t apply. Passive models will continue to disappoint. Investors need a forward-looking, macro-aware, alpha-driven strategy.
At Tigris Asset Management, we help clients deploy capital where it counts — not where it’s convenient.
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