Blue Sky Alternative Investments Ltd (ASX: BLA) shares are currently up around 4.6% in the opening minutes of trade today after giving a market update about its asset valuations.

Blue Sky is an alternative fund manager that offers investors exposure to assets like private equity, water and student accommodation.

Blue Sky has been under the microscope ever since a negative report by overseas-based Glaucus was published accusing Blue Sky of having less fee-earning assets than reported.

The update

Firstly, Blue Sky said that it had $40 million cash with no corporate debt at 30 June 2018. This compares to a forecast of $32.3 million that was made a month ago.

The alternative fund manager advised investors that had it $3.4 billion of fee-earning funds at the financial year end, which was consistent with its previous disclosure.

After withdrawing market guidance for underlying profit for the 2018 financial year, Blue Sky undertook independent valuations of 89 managed assets.

This resulted in valuation adjustments that will negatively affect profit by $24.7 million. Around $16.4 million was related to write-downs in retirement living and student accommodation.

However, the company was pleased to announce that Blue Sky Alternatives Access Fund Ltd’s (ASX: BAF) (a listed investment company) value increased by 0.7% last month. This company’s share price is currently up 3.3%.

Did you know Warren Buffett was a millionaire in his late 20’s but ‘only’ worth $300m at his 50th birthday? Now he is a $US84 billion investor.

That means he made 99% of his wealth after turning 50! How does a 50-year-old do that? Download the free Aussie investing ebook, “What Buffett’s Investing Checklist Can Teach Aussie Investors“ when you join the free Rask Group Investor Club Newsletter. You’ll get insights into the 4 steps Buffett uses to pick his investments.