Research

CA Answers: In an Environment of Declining Demographics and Slow Productivity Growth, What Investments Look Attractive?

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. Investments with the potential to earn returns competitive with equities—without a dependence on economic growth—are especially valuable diversifiers for portfolios. Such investments are varied, sometimes niche, and require skilled implementation. Many require some illiquidity, but may […]

The Financial Performance of Real Assets Impact Investments: Introducing the Timber, Real Estate, and Infrastructure Impact Benchmarks

Within impact investing, real assets investments constitute one of the largest opportunity sets. This report presents findings from our analysis of the financial performance of 55 private real assets impact investing funds across three sectors: timber, real estate, and infrastructure. We find that risk-adjusted market rates of return are achievable in impact investing, but note that as with conventional funds, manager selection is key to success.

This report also marks the launch of the real assets impact investing financial performance benchmarks, which will track the performance of impact investing funds across the three sectors of focus and will be maintained and updated on a quarterly basis.

Maintaining Strategic Direction through Peaks and Valleys

An extended bull market can tempt even the savviest investors into abandoning their long-term discipline. Resisting the impulse to switch horses in the middle of the race is hard, but necessary—the most important trait of successful investors is their ability to maintain discipline in sticking to a long-term strategy during good times and bad. Diversified portfolios—structured to earn returns comparable to their rate of spending at tolerable levels of risk—have benefitted long-term investors and grown their purchasing power for decades, and we have no reason to expect a different outcome when today’s bull market inevitably corrects.

CA Answers: Should Investors Buy Downside Protection to Hedge Against an Equity Market Drop?

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 diversified portfolios already have some cushion if equities sell off given holdings like fixed income, hedge funds, and other diversifying assets. Further, trying to time the market by buying derivatives […]

VantagePoint: Second Quarter 2017

This quarter’s edition discusses the reflationary environment, positioning in global equities, prospects for sovereign bonds (both nominal and inflation-linked), and USD strength. We also profile two strategies that can diversify portfolios without dependence on economic growth: life settlements and pharmaceutical royalties.

CA Answers: Does US Corporate Tax Reform Endanger Private Debt Strategies?

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. No. If the interest expense deduction is eliminated, debt issuance may drop slightly, but the demand for senior and mezzanine debt will be little changed, and the risk/reward proposition is still attractive for investors. Under the […]

CA Answers: What’s Next for the US Dollar?

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. We still expect a rising US dollar over the coming year or so; however, the currency is entering the final phase of the strong-dollar cycle and investors should be aware that valuations and historical cycles suggest […]

CA Answers: Is the United States Set for a Spike in Inflation?

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. We doubt it. But, price levels are likely to rise gradually in the months ahead, as the rebound in energy commodities continues to impact measurements. Recent inflation data releases have raised concerns about a potential spike, […]