The Economy, Not Kevin Warsh, Will Drive Fed Policy
Kevin Warsh became chair of the Federal Reserve on May 15. His appointment is unlikely to drive a major near-term policy shift.
Research Publications Archive
UK Political Turmoil Adds Noise, But Gilts Will Remain Driven By Broader Macro Forces
Large losses in last weekend’s local elections have increased pressure on Labour Party leader and Prime Minister Keir Starmer. Frustration was already building within the Labour Party over the lack of visible progress on key priorities, compounded by weak approval ratings.
Has Artificial Intelligence Made Market Concentration Less Risky?
No. Artificial intelligence has changed the shape of market concentration more than its substance.
Comparative Asset Allocation and Total Return: UK Foundations and Endowments
Our biannual report summarizes asset allocation and total investment performance for 20 of Cambridge Associates’ UK foundation and endowment clients.
Does the Iran War Change Our View That Equity Market Broadening Will Continue?
No. The Iran War does not alter our conviction that the broad equity rally that began in 2025 will continue.
A New Era of Dispersion in Direct Lending Favors Disciplined Managers
Direct lending has attracted significant institutional capital over the past decade, but that environment is now changing. In a more challenging landscape, we expect performance dispersion to emerge more clearly between managers, reinforcing the importance of manager selection and taking a diversified approach across strategies, geographies, and borrower segments.
US Private Families Should Revisit How Munis Fit Within a Broader Diversification Strategy
We believe US private families should continue to anchor the portion of the portfolio intended to diversify equity risk with munis, while being more selective about allocations to cash, Treasuries, and other taxable fixed income, given the shift in after-tax trade-offs.
Will the Iran War Force the ECB and BOE to Tighten as Much as Markets Expect?
No, we do not think so. While the European Central Bank and Bank of England have adopted a more hawkish tone in response to the Iran-driven energy shock, we believe markets are overpricing the amount of tightening that will ultimately be delivered.
Germany’s Fiscal Boost Remains a Tailwind Despite Near-Term Risks
German equities entered 2025 with strong momentum, supported in part by a sharp shift in Germany’s fiscal outlook. After years of underinvestment, the government announced materially higher spending on infrastructure and defense. However, that momentum faded through 2025 into 2026, and German equities stalled.
ODD in Focus: Artificial Intelligence Usage Governance and Compliance
AI’s growing role in investment management has made strong AI governance, policies, and security controls a key focus of operational due diligence in assessing whether managers adequately protect proprietary and confidential information.