Research

US PE / VC Benchmark Commentary: Third Quarter 2017

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 […]

Liability-Hedging Handbook: A Guide to Best Practices for US Pension Plans

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.

CA Answers: Is it Time to Sell Energy MLPs?

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, […]

CA Answers: Are Inflationary Pressures in the United States Building?

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 […]

CA Answers: Should US Equity Investors Fret About Rising Yields?

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 […]

Distressed Debt: A New Way to Categorize Managers

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 […]

CA Answers: Is the Environment for Active Management Improving?

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 […]