Research Publications Archive

Friend or Foe: Hedge Funds Versus Alternative Risk Premia (Euro Edition)

, , | Pension Series | Download

It has been a challenging time for hedge funds in recent years. Loose monetary policy has driven equity markets upwards and hurt short books. The growth of quantitatively traded funds has eroded some of the inefficiencies commonly exploited by hedge funds. This fact, coupled with the shift toward low-fee passive and alternative risk premia (ARP) products, has raised questions about the merits of hedge funds in investor portfolios. In this paper, we focus on comparing ARP versus hedge funds and investigate whether hedge funds and ARP funds are complementary or whether ARP funds are actually a viable replacement for hedge funds.

Venture Capital Positively Disrupts Intergenerational Investing

| Private Client Series | Download

Families of wealth face three key questions about intergenerational wealth planning: how best to invest to sustain future generations; how best to engage the next generation; and how best to ensure family unity endures. Often each question is addressed independently. We find that a conversation across generations about the impact of a meaningful venture capital allocation can help address all three questions in an integrated manner.

College and University Flash Statistics Report: Fiscal Year 2019

, | Download

The College and University Flash Statistics Report provides a first look at the results of our 2019 College and University Investment Pool Returns survey. Included in the analysis are a summary of investment pool returns and asset allocation for 164 colleges and universities. Additionally, the report provides detailed data by institution on asset allocation and target asset allocation. Look for our full annual analysis in the upcoming College and University Investment Pool Returns report to be published later this winter.

Liability-Hedging Strategies for US Plan Sponsors in the Low Interest Rate Era

, | Pension Series | Download

As sponsors of US single-employer defined benefit plans know all too well, interest rates have experienced dramatic swings in recent years. While many plan sponsors have adapted to this environment by strategically hedging their liability interest rate risk, many are still questioning the efficacy of doing so—especially when interest rates appear to be low. Yet, failing to hedge long-duration liabilities with long-duration assets is a risky endeavor that exposes the plan sponsor to significant downside risk.

Will Weak Economic Data in the Euro Area Undercut Its Equities?

, ,

No, we don’t think so. While euro area economic activity has weakened meaningfully, with real GDP growth falling to its lowest annual pace (1.1%) since 2013 in third quarter, strong equity returns aren’t dependent on robust economic growth. Ultimately, we continue to like the bloc as part of a risk-controlled overweight to global ex US equities funded from US equities.