Insights

2023 Outlook: Hedge Funds

We expect macro hedge funds to perform well, given our expectations that market volatilities will remain elevated and our view that inflation risks are skewed to exceeding expectations. We expect long/short managers will benefit from positive short rebates. Continued Inflation Uncertainties Underpin Our Optimism in Macro Hedge Funds in 2023 Meisan Lim, Managing Director, Hedge […]

December 2022

2023 Outlook: Real Assets

We expect energy equities will be resilient due to underinvestment in recent years. So, we don’t think investors should underweight this economic sector in the near term despite some long-term headwinds from decarbonization efforts. In real estate, we think offices may finally offer some attractive opportunities for the discerning investor. Energy Equities at Benchmark Weights […]

December 2022

2023 Outlook: Currencies

We expect the US dollar to remain firm but with limited appreciation relative to 2022, given our view that it is near the end of its incredible multi-year run. We believe gold’s performance will improve and digital assets, in general, will not surpass prior highs, many of which were set in 2021. 2023 Will Not […]

December 2022

Should Credit Investors Expect More Negative Headlines in the Months Ahead?

Yes. The combination of rising interest rates and a deteriorating earnings outlook is likely to generate ample negative headlines about credit in the months ahead. Rating agency downgrades will accelerate and defaults will rise. The flipside is that some of this is already in the price and many borrowers are prepared for these headwinds. Investors […]

November 2022

Solvency Beyond Relief: Unlocking the Full Potential of SFA Program Assets

The American Rescue Plan Act of 2021 (ARPA) included substantial relief funds for the most troubled US multiemployer pension plans through its Special Financial Assistance (SFA) program. The SFA program was created to help seriously underfunded multiemployer pension plans maintain solvency through 2051. Multiemployer pension plans receiving SFA funds now have a unique opportunity to […]

November 2022

Endowment Governance: Aligning Foundation Investments and Mission

Where Do We Start? An institution considering initiating or adding to a mission-aligned investing strategy must first define its objectives. Next, it should evaluate the available approaches and tools on portfolio structure, impact, and performance expectations. Any planned changes must be balanced with the need to continue support for ongoing operations and grantmaking activities. Drawing […]

November 2022

Quantitative Tightening Raises the Risks for Markets

With inflation running at multi-decade highs, monetary policymakers are united in one of the most aggressive tightening campaigns in decades. Most central banks have already significantly increased policy rates this year, and some are unwinding their massive balance sheets, also known as quantitative tightening (QT). From what we know about QT, we expect it to […]

November 2022

US Private Equity Looking Back, Looking Forward: Ten Years of CA Operating Metrics

Ten years ago, we were emerging from the Global Financial Crisis (GFC); the worst recession and market crash experienced in decades. With increased commitment activity and growing exposures to private investments, institutional investors needed new tools to understand the impacts on and implications for their portfolios. In response to this need, Cambridge Associates issued our […]

November 2022