Commodities: Sitting Out the Next Round
Rich spot prices, combined with unhelpful collateral and roll yields, are a recipe for disappointing commodity returns; natural resources equities are more attractive.
Research Publications Archive
Defensive Equity Strategies – Scanning the Field
We believe a defensive approach within equity allocations makes sense today given continued unresolved macroeconomic concerns. While there are several viable strategies, approaches can vary significantly across indices and managers, making implementation a critical consideration.
Considerations in Selecting an Investment Vehicle: A Guide for U.S. Tax-Exempt Investors
The choice of investment vehicle can have unexpected but meaningful implications for the business of managing a portfolio, affecting audit and accounting processes, financing decisions, taxes, liquidity, and even investment performance. This report provides an overview of the basic U.S. laws and regulations governing investment advisers and investment funds, discusses investment vehicles available to U.S….
Asia ex Japan – Exit the Rabbit, Enter the Dragon
Although valuations are reasonable, macro risks remain substantial. For now, investors should be neutral and seek to build overweight positions on weakness.
2012 – More of the Same
This commentary briefly discusses market activity in 2011, assesses both long-term structural headwinds for markets and particular risks for 2012, and provides our outlook for the year. It also examines where we could be wrong, and reviews our asset class outlooks based on current valuations. Overall, our investment advice is to stay defensive, seek greater…
Harvesting Ripe Fruit From a Frost-Covered Tree
The U.S. economy is still on life support, but investors should not assume that equities and credit are dead money.
Australia – Hang on for the Ride
We are neutral on Australian equities and bonds, but still a bit nervous about the Australian dollar. While Australia faces some homegrown challenges, most of the risks emanate from offshore. We see a balance of potential upside—and downside—risks that argue investors should hope for the best, but prepare for the worst and ultimately hang on…
Active Currency as an Asset Class: Is Currency the New Long Volatility Strategy
As modern portfolios evolve, investors continue to seek new ways to diversify exposures and mitigate volatility. Currency exposure, once thought of exclusively as a risk to be hedged away, is today being embraced by some in mandates designed to generate returns. The form of such a mandate may vary widely, from a discrete, active strategy,…
Global Macro: The Largest Canvas in the Industry
This paper discusses what global macro is and how its practitioners operate, reviews its history and performance, and discusses its major attractions and key risks. We believe a thoughtfully constructed allocation to select global macro managers offers various potential benefits to investors, particularly in an increasingly macro-driven environment.
Japan – The Long Road to Recovery
We continue to be neutral on Japan despite low valuations, as the catalyst for outperformance remains elusive.