US Mid- to Large-Cap Equity Manager Performance: 2021
For the eighth straight year, the majority of active mid- to large-cap equity managers underperformed in 2021.
Research Publications Archive
Should the Latest Climate Research Catalyze Change in How Investors Think About Risk?
Yes. According to a recent report released by the Intergovernmental Panel on Climate Change, “climate change is a threat to human well-being and planetary health,” and the window of opportunity to “secure a livable and sustainable future for all” is rapidly closing.
Decades of Data: Emerging Markets 1987–2021
The 2021 Emerging Markets 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.
Comparative Asset Allocation and Total Return: UK Foundations and Endowments
Our biannual report summarizes asset allocation and total investment performance for 23 of Cambridge Associates’ UK foundation and endowment clients.
China Risks: Is Taiwan Next?
Given Russia’s invasion of Ukraine, concerns that China might decide to invade Taiwan are rising. But China is not Russia, and Taiwan is not Ukraine. For China to unilaterally break the status quo and risk a failed invasion and inflict economic pain on the population would be extremely destabilizing for a party that puts domestic stability above everything else. And given the current state of the Chinese economy and China’s vulnerability to US tech sanctions and the USD banking system, China is unlikely to invade Taiwan any time soon.
Business Ownership at a Crossroads: Key Questions for Planning What’s Next
Private business owners who hold the majority of their wealth in one company are different from other investors. They face unique challenges when making investment decisions, including the fundamental question of whether to retain a concentrated position in their business. In this paper, we share some key questions business owners can ask themselves to help arrive at answers best suited to their own unique needs.
Causes and Implications of the Russian Oil Supply Shock
The outlook for oil remains highly uncertain and is dependent on various political decisions.
Decades of Data: Europe ex UK 1900–2021
The 2021 Europe ex UK 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.
Would Adoption of Policies Like the Rooney Rule by Asset Allocators Encourage Greater Diversity Among Investment Managers?
No. Instead, we favor a comprehensive approach that addresses inequities throughout the manager selection process.
Is the Decline in Chinese Equities Justified by Market Fundamentals?
We don’t think so, as the markets are pricing in more severe conditions than we believe are warranted.