Yes. The Inflation Reduction Act (IRA) will generate significant benefits for companies involved in clean energy. The bill is anticipated to provide almost $370 billion over the next decade to a variety of industries, including utilities, transportation, and manufacturers of products such as batteries and solar components. The ten-year life of these tax credits provides […]
August 2022
Equity long/short investing is one of the most widely adopted strategies by hedge fund managers in Asia. Its importance has increased over time, and we believe that this strategy can play a key role within a global hedge fund portfolio. There have been several positive developments in recent years that build the case for investors […]
August 2022
Yes. Munis still have value on an after-tax basis over the long term, and their near-term outlook has improved following the rise in yields and spreads during this year’s sell-off. Still, the economic and policy backdrop remains challenging. Thus, we believe it is reasonable for most taxable investors to hold a reduced portion of their […]
August 2022
No, as the risk/reward remains uncompelling and spreads may widen further if a recession ensues. However, the sell-off has enhanced our enthusiasm for collateralized loan obligation (CLO) debt, which offers attractive pricing, solid fundamentals, and lower interest rate sensitivity than most other credit investments. Prices for most credit assets have declined in 2022, as have […]
July 2022
US equities have entered official bear market territory with a more than 20% price decline. Some markets have seen sharper drops with speculative tech stocks (e.g., the Ark Innovation ETF) falling more than 75% from early 2021 peaks and many crypto assets seeing similar declines. Given the uncertain economic and profit environment, have markets bottomed […]
July 2022
No. Emerging markets (EM) equities face a challenging macroeconomic environment, but many of the same issues are also plaguing their developed markets (DM) peers. We think EM allocations outside of China should be in line with policy, given that the risk of a widespread EM debt crisis is low, valuations relative to DM peers are […]
June 2022
The Federal Reserve announced that it was raising the target range for the Fed funds rate by 75 basis points (bps) to 1.50%–1.75%. An apparent briefing to the financial press last week meant that this course of action was fully priced in by the rates market beforehand, despite just 50 bps being priced as recently […]
June 2022
US small-cap stocks have underperformed large-cap peers in recent years, opening a significant valuation discount that seems hard to justify based on relative earnings strength or balance sheet health. Looking ahead, the sector exposure of small-cap stocks may make them better positioned for the current environment of rising interest rates and high commodity prices. While […]
June 2022