The new Treasury FRNs are attractive not only for money market funds and institutions that roll T-bills within large liquidity or collateral pools, but also for other institutional investors intent on reducing interest rate risk within their fixed income allocation.
Executive Summary Private investments often play an important role in an investor’s portfolio, yet the inconsistent methodologies typically used to evaluate private investment performance and public market performance result in a lack of understanding about true relative performance. The two most common measures of investment performance—time-weighted returns (TWRs) and money-weighted returns, typically an internal rate…
Grain demand from the emerging world is likely to persist, although given rich land prices in some regions, investors should proceed carefully in this developing asset class.
Africa’s changing political and economic landscape over recent decades offers investment prospects worthy of consideration. In this report, we address the key opportunities and risks associated with public (long-only and hedge funds) and private market investing in sub-Saharan Africa, with an emphasis on Frontier Africa. We find that public markets exhibit attractively low correlations to…
Looking ahead to 2014 we are focused on several key themes, among them the evolution of global monetary policy, the likelihood of European equities exceeding diminished expectations, and the headwinds, risks, and opportunities associated with emerging markets equities.
Monetary policy is an important wildcard, but deleveraging has faded as a headwind for U.S. economic growth and investors would be unwise to weigh it heavily in their investment decisions.
U.S. equity valuations have been the subject of intense debate. Investors should maintain their focus on normalized P/E ratios, which indicate that valuations are elevated and that U.S. stocks are priced to deliver low multi-year returns.
The endowment model of investing is far from broken. Early adopters of the model continue to push forward, reaping impressive gains along the way. In this paper we provide a practitioner’s perspective on the endowment model, the experience of some early adopters of the strategy, and the execution of the model in the current environment.
Impact investing, through which investors allocate capital to market-based (i.e., profit-oriented) solutions to social and environmental challenges—in contrast to philanthropic or political solutions—has garnered increasing attention over the last decade.
European Equities: Time to Focus on the Micro European equities trade near a record historical discount to U.S. equities; potential for a turnaround in earnings and improving macro conditions further bolster the case for an overweight position. Europe has faded from the headlines in 2013 as Federal Reserve tapering, Abenomics in Japan, and a slowdown…