Investors are facing a challenging period for earning what they spend and achieving adequate portfolio diversification. With most DM sovereign bond yields near or below zero, expected returns for bonds are at all-time lows and diversification qualities are constrained. In this edition of VantagePoint, we evaluate defense and diversification options to identify a modern approach to diversification in this low-yield era.
One of the biggest myths in venture capital investing is that established mega funds are the only way to generate outperformance.
We understand the value of sourcing both established and emerging funds. Our deep global networks, built over 40 years of investing in venture capital, often make us a first stop for individuals who spin out of their prior firms to set up their own shops. Our knowledge of those portfolio managers—along with deal-level information tracked in our proprietary databases—helps us to glean insights on those spin-outs based on the managers’ history.
We have also often been able to use our market presence and scale to negotiate more favorable fees and terms for our clients.
Families of wealth face three key questions about intergenerational wealth planning: how best to invest to sustain future generations; how best to engage the next generation; and how best to ensure family unity endures. Often each question is addressed independently. We find that a conversation across generations about the impact of a meaningful venture capital allocation can help address all three questions in an integrated manner.
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Yes, because rising concentration reflects rising valuations for the largest stocks, which are likely to serve as a headwind to index returns. Further, the growing market share of these companies increases the potential for rising regulatory oversight.
Investors have predominantly relied on developed markets sovereign bonds for defense in balanced portfolios, but low rates have diminished their diversification characteristics.
Private investors and wealthy families face distinct portfolio management complexities. Our latest paper details how we build and manage portfolios to meet each private client’s long-term goals.
Register today for our Private Investments Summit on March 11th from 10:30am – 3:00pm ET. Join us as we uncover how investors can maintain long-term focus on private investments, while enduring volatility from all sides. If you’re interested, please email firstname.lastname@example.org
As 2020 comes to a close, we expect some key investment drivers to persist into next year. While our views speak to many different challenges confronting investors, including the poor bond yields on offer, the fate of US-China relations, and where to find growth, they are rooted in the belief that 2021 will be a year of healing for the global economy.
Healthcare systems appear to have navigated the most severe financial impact of the pandemic. We believe the present time provides an opportunity to reset investment strategy and recalibrate portfolios as necessary.