This expansive report discusses our approach to strategy allocation by providing the basic framework for allocation decisions, the key return drivers and investment backdrops in the core marketable alternative strategies, and recommendations for program construction. It also contains a performance review of the five core marketable alternative strategies: long/short equities, distressed securities, convertible arbitrage, merger…
Whether the current turmoil in the credit markets intensifies or slowly blows over, the days of easy credit financing are over.
A look at the origins and extent of the credit crackup in the United States.
For the time being investors should avoid large bets on European property and should be in no hurry to ramp up allocations.
While rising real yields have restored some value to European inflation-linked bond markets, linkers are not yet attractive on their own, although do offer some value relative to nominal government paper.
Contrary to popular belief, aggregate yields on local currency emerging markets debt do not offer a premium to US$-denominated debt on a currency-adjusted basis; however, given the breadth and relative inefficiency of the local currency market, we continue to believe active managers should be able to add value.
Is conventional wisdom correct in assuming that the small-cap sector of the U.S. equity market is less efficient than the large-cap sector? And what, exactly, defines the small-cap sector? This report seeks to answer those questions and others by sorting through the relevant small-cap indices and the biases of manager databases. It also outlines the…
The slim premium for growth stocks provides investors an opportunity to upgrade the quality of their portfolios.
While there are legitimate reasons to believe that diversification of foreign exchange reserves by central governments will support an asset boom, diversification of reserves carries manifold implications that will likely play out over an extended period.
Going long the European restructuring/growth story has gone from a contrarian play to a consensus trade.