Former gaming executive launches DAS Capital Global Distressed Assets and Special Situations Fund
Toronto- and Singapore-based investment firm DAS Capital has announced the launch of the Global Distressed Assets and Special Situations Fund, which will have a global focus and an emphasis on investing in the traditional and virtual gaming markets. The fund will be managed by DAS Capital's Chief Investment Officer, David Subotic, a former gaming executive and accomplished investment advisor.
We are confident the table is set for strong returns in depressed and distressed assets, said Mr. Subotic. Our initial focus is on the gaming sector, where there are a number of historically profitable, but currently undervalued, assets in both the traditional and virtual gaming markets that we are examining.
In the wake of the 2008 market crash, many casino stocks reached all time lows before making strong comebacks based on the industry's expansion in Asia. Subotic believes there are still bargains to be found and has spent the past several weeks shuttling between Atlantic City and Nevada examining potential investments.
The current focus on Asian expansion to provide the next tranche of growth for casino stocks presents a unique opportunity to capitalize on the somewhat out of fashion, yet traditionally proven, markets such as Nevada and Atlantic City, said Subotic. Battered by the recession, overleveraged, cash strapped companies are being forced to sell off some of their respected brands and historically profitable operations.
Subotic has simultaneously been researching a number of investment targets in the virtual gaming sector, citing the combination of its popularity growth in Asia and talk of revisions to the strict regulatory structure in North America. However, based on more than a decade of gaming experience as both an investor and developer, including five years spent in Asia and significant involvement in the early days of virtual gaming, Subotic feels integration is the key to the future growth of the gaming sector.
The virtual gaming market remains a relatively new frontier that is yet to reach its full potential due to ongoing regulatory confusion, said Subotic. But we feel the real opportunity in gaming, both virtual and traditional, is the potential to leverage ongoing technological advancements to integrate the land based and virtual gaming markets, while also creating synergies between North American and Asian properties.