Overview Over the first nine months of 2017, US private equity quarterly returns were more consistent than those for US venture capital, as indicated by the Cambridge Associates LLC benchmark indexes of the two alternative asset classes. In third quarter 2017, the Cambridge Associates LLC US Private Equity Index® returned 3.9%, matching or beating the […]

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. Not necessarily. Although we believe the announced tariffs are a negative for the global economy, recent market moves have probably more than baked in the pain they will cause. Moreover, it is impossible to know whether […]

For many pension plans, investment strategy is often structured with a liability-hedging portfolio and a growth portfolio, with the weight and composition of each determined by a strategic asset allocation or a de-risking glidepath. Within this overall structure, the construction and calibration of the liability-hedging portfolio is integral to effective pension asset management. This report focuses exclusively on the liability-hedging portfolio, delineating key considerations and best practices for single-employer defined benefit plans including those sponsored by corporations, health care institutions, non-profit organizations, and certain partnerships.

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. We don’t think so. Investors with allocations to energy MLPs (master limited partnerships) may want to maintain existing allocations, despite their recent poor performance and the proposed regulatory changes impacting interstate pipelines. The industry enjoys reasonable valuations, […]

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. Yes. Inflationary pressures in the United States appear to be building, as positively trending wages, expansionary fiscal policies, and protectionist trade barriers feed into a humming economy. Although we expect these pressures signal an increased risk […]

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. Not in the near term. The current environment of rising, but low, interest rates accompanied by strong earnings growth expectations is supportive for equities. Rising rates create challenges for equities when earnings growth does not keep […]

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. No. The US public equity market remains the largest and most liquid in the world and continues to offer a robust opportunity set for investors. Still, factors such as larger company sizes and industry concentration impact […]

As the economic cycle progresses, the next recession draws inexorably closer, bringing with it the next downturn in the credit cycle. Recognizing this, institutional investors are increasingly considering allocations to distressed debt managers. While lumping all distressed managers into one group is tempting, different managers have meaningfully different approaches that are not captured by considerations […]

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. No, most investors should sit tight. The persistence of strong corporate and macroeconomic fundamentals in the face of the recent sell-off and spike in volatility strongly suggests that the duration of the market rout should be […]

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. We are asked this question on a regular basis, but believe it is fundamentally the wrong question for investors to ask if they are seeking to outperform the market over the long term. Regularly, financial news […]