Recent Publications

European Bank Stress Adds to Economic Growth Challenges

On 20 March, investors awoke to news Swiss authorities had used emergency measures to push through a hastily arranged merger of Credit Suisse and UBS. Following two recent bank failures in the United States, the announcement raised questions over the health of European banks and the broader economy.

Spending Policies and Practices: Fiscal Year 2022

Annual distributions from the endowment are a source of supplemental operating revenue for most endowed institutions. An institution’s endowment spending policy provides a basis for the calculation of the annual distribution, serving as a bridge that links the long-term investment portfolio and the enterprise. The data and analysis in this report review the various spending rule types used among our endowment clients. Also included are analyses on the endowment’s support of operations and effective spending rate.

The End of the Fed’s Tightening Cycle Nears

Today, the Federal Reserve raised the Fed funds target range by 25 basis points (bps), to 4.75%–5.00%, as expected, and signaled it expects at least another 25 bps of additional rate hikes will be necessary to bring down inflation. This announcement and the recent turmoil in the banking sector increase our confidence that the Fed is nearly done tightening.

US Pensions: Higher Interest Rates Call for a Fixed Income Reassessment

In more uncertain investment environments, pension plan sponsors should remember that down markets can create value opportunities for well diversified portfolios. This paper discusses how recent developments in the fixed income market may be able to help total return-seeking pension plan portfolios, frozen plans looking to de-risk, and open or recently closed pension plan portfolios.

Regulators Seek to Contain SVB Fallout

Following no US bank failures in the last two years, two banks failed in the last three days—Silicon Valley Bank (SVB) and Signature Bank. As the situation evolved last week, investors, businesses, and regulators became increasingly concerned about SVB and risks to the broader economy. Over the weekend, US officials from the Federal Reserve, Treasury, and FDIC released a joint statement saying that all deposit holders at both banks will be kept whole, even their uninsured deposits, and the Fed established a new Bank Term Funding Program. In addition, the UK Prime Minister and Bank of England helped arrange the sale of SVB’s UK subsidiary to HSBC. Taken together, these actions significantly decrease contagion risks associated with the collapse of these two banks.

Decades of Data: United States 1900–2022

The 2022 US edition of our annual report on the history of financial markets provides context for the range of returns investors can expect from equities, bonds, and cash; reveals the importance of various components of equity returns; examines the evidence for equity mean reversion; and reviews the relationship between initial valuations and subsequent returns for equities and bonds.

Will the Outperformance of Eurozone Equities Persist?

No, while the recent outperformance and positivity surrounding Eurozone equities was justified by shifts in the macroeconomic landscape, we do not have confidence that outperformance will continue, given the challenges still facing the region. Therefore, we suggest investors keep Eurozone equity allocations in line with policy weights.

Monthly Publications

Tactical CA House Views

Highlights our latest portfolio advice and reviews notable data for over 50 asset classes/sub-strategies, with key charts and views from our asset class specialists. Read a short introduction →

View Individual Asset Class/Substrategy Views

Market Matters: February 28, 2023

Monthly review of market action with the key charts for the month and a snapshot of index performance in major currencies

Quarterly Publications

CA’s house view and advice, written by our Chief Investment Strategist, Celia Dallas

Summarizes asset allocation and total investment performance for over 400 of Cambridge Associates’ endowment and foundation clients

Hedge Fund Update: Fourth Quarter 2022

Insights from the leaders of our hedge fund research on what drove performance in the quarter

US Manager Universe Statistics: Fourth Quarter 2022

Presents quarterly representative long-only and hedge fund manager performance.

Benchmark Commentary

Analysis of the performance shown in our private investment benchmarks