ESG Guidance for UK Pension Schemes
August 2017
Insights
Is the Recent Concentration of US Equity Performance in a Small Number of Stocks a Cause for Concern?
Not in our opinion. Recent market leadership by the so-called FAAMG stocks is not extraordinary relative to history, and their valuations and fundamentals, combined with this year’s relatively healthy market breadth, mean that they don’t necessarily present an outsized threat at this time.
August 2017
When Secondaries Should Come First
Investors seeking to gain initial exposure to private investments should actively consider secondaries, rather than funds-of-funds, as the very first step to constructing a long-term private equity portfolio.
August 2017
Funding Development for Public Universities
Investing in revenue development and fundraising while simultaneously pursuing goals for asset growth is a balancing act. Public universities commonly draw from a combination of three funding sources—the university’s centralized operating budget, gift fees, and administrative fees charged against the endowment—to help pay for the growing costs of development efforts. However, determining the right mix […]
August 2017
Is the US Dollar Dead?
We are not ready to pronounce the strong dollar cycle dead, but do admit the US dollar is in critical condition. Investors should remain partially unhedged or prepared to ride out a period of currency volatility. It’s been a cruel summer for the US dollar. The DXY currency index has given up all its gains […]
August 2017
Will the Nascent Shift in Equity Market Leadership from US to Non-US Equities Persist?
Prospects for a continued turn in the cycle look promising. US outperformance relative to other developed markets peaked in November 2016, as the chart below shows, raising the prospect that the cycle has indeed turned. US equity leadership has faded as valuations have moved into very overvalued territory, while other markets are fairly valued and […]
July 2017
VantagePoint: Third Quarter 2017
This quarter’s edition covers the very overvalued US equity market, reviewing what late cycle looks like in the US and casting a critical eye at the consensus view of an overly concentrated market. Also discussed are the better prospects for ex US markets and the importance of remaining diversified.
July 2017
Tracing the Rise of Direct Lending: The Importance of Rates and Loan Structure
If passing the Dodd-Frank Wall Street Reform Act in July 2010 did not spawn direct lending, what did? In this analysis we explore the genesis of the recent direct lending phenomenon to identify risks to the strategy and what investors should watch going forward.
June 2017