Will the “Phase One” Trade Deal Bring More Stable Relations Between the United States and China?
Yes, in the near term, but longer term we expect trade, tech, and possibly finances to decouple further.
Research Publications Archive
Review of Market Performance: Calendar Year 2019
The gradual abatement of geopolitical risks, and a renewed accommodative stance from global central banks, led to a strong rebound in risk sentiment in 2019. Equities led the way higher, while interest rate cuts ensured fixed income markets participated in what was a robust year for asset classes across the board. This chart book explores global asset returns and the factors influencing performance last year.
Friend or Foe: Hedge Funds Versus Alternative Risk Premia (Euro Edition)
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
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.
Under the Microscope: Private vs Public Company Operating Metrics for US Companies
This analysis includes our observations and more than 30 charts on key metrics including purchase price multiples, leverage multiples, revenue growth, earnings (EBITDA) growth, and earnings (EBITDA) margins.
What Risks and Opportunities Are You Focused on as We Enter 2020?
We see opportunities to deploy capital in some niche areas of the investment landscape and reshape (or at least re-evaluate) some areas of the portfolio.
Investment Publications Highlights: Fourth Quarter 2019
Fourth quarter’s edition summarizes articles on FX markets.
College and University Flash Statistics Report: Fiscal Year 2019
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.
With Trend-Following Funds Down Sharply This Fall, Should Investors Fish or Cut Bait?
Fish, but only if investors can accept very lumpy returns. The SG Trend Index of ten large trend followers (e.g., Commodity Trading Advisors or managed futures strategies) fell more than 4% in both September and October and only matched cash’s return over the past five years.
Liability-Hedging Strategies for US Plan Sponsors in the Low Interest Rate Era
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.