Insights

Endowment Radar Study 2021: A Growing Role

Endowment Radar is a methodology that Cambridge Associates developed to visually evaluate the endowment’s role in the college and university enterprise. The four components of Endowment Radar measure the endowment’s impact on budget funding (Endowment Dependence), pricing strategy (Endowment Support-to-Financial Aid), balance sheet health (Endowment-to-Debt), and an indicator of future purchasing power (Net Flow Rate). […]

April 2022

Are High Oil Prices a Threat to Investors?

Yes, but the level of threat varies across asset classes. Higher oil prices are likely to slow economic growth and weigh on corporate profits across many regions, but more so in countries that are large energy importers, where the energy intensity of growth is highest and where governments have the fewest resources to cushion the […]

April 2022

Higher Rates Are a Headwind, but US Housing Rests on Solid Foundations

The US housing market has been on a tear in recent years, supported by low interest rates, favorable supply/demand dynamics, and a recent boost from the pandemic-related demand for more space. Investors interested in gaining exposure to the asset class are seeing their choices expand. This publication provides an update on some of the macro […]

April 2022

Should the Latest Climate Research Catalyze Change in How Investors Think About Risk?

Yes. According to a recent report released by the Intergovernmental Panel on Climate Change (IPCC), “climate change is a threat to human well-being and planetary health,” and the window of opportunity to “secure a livable and sustainable future for all” is rapidly closing. The new report highlights the considerable risks posed by climate change to […]

March 2022

Would Adoption of Policies Like the Rooney Rule by Asset Allocators Encourage Greater Diversity Among Investment Managers?

No. Adoption of policies like the Rooney Rule—a requirement to interview at least one woman or person of color candidate for leadership positions by many companies and institutions—has not substantially improved diversity among leadership ranks. Given this reality, we doubt such policies would encourage greater diversity among investment managers. These policies are not created to […]

March 2022

Business Ownership at a Crossroads: Key Questions for Planning What’s Next

Private business owners who hold the majority of their wealth in one company are different from other investors. They face unique challenges when making investment decisions, including the fundamental question of whether to retain a concentrated position in their business. After all, concentrated positions can create wealth, but they also increase portfolio risk. Because of […]

March 2022

Is the Decline in Chinese Equities Justified by Market Fundamentals?

We don’t think so, as the markets are pricing in more severe conditions than we believe are warranted. The MSCI China Index, which tracks Chinese stocks listed in both Hong Kong and the United States, has sold off sharply thus far in March and is down roughly 25% year-to-date, and over 50% from its February […]

March 2022

What Long-Term Investment Implications Should Investors Be Monitoring Related to the War in Ukraine?

As we peer through the fog of war, prospects for a decline in US dollar dominance, durably higher inflation, and persistent heightened geopolitical risk appear on the horizon. However, it can take a long time before ripples either fade out or become waves. And their future path is influenced by their interaction with each other […]

March 2022