We cover the following topics in this issue: In our feature article, “Alpha Isn’t Optional—But Is It Always Possible?,” Celia Dallas and Max Senter discuss why investors should continue to focus on alpha generation as a key driver of long-term performance even during a beta-driven market environment. In “Taking the Wheel: What’s Driving the Co-Investing…
We are on record advising clients to underweight US equities, as they are overvalued both in absolute terms and particularly relative to non-US markets. That said, we believe strongly in the value of constantly looking for where we could be wrong; thus, we have lately been exploring analyses that make the case for a bullish…
The lack of corporate debt liquidity is certainly worrisome—indeed, it is one of a myriad of similar potential trouble spots—and has some idiosyncratic elements investors should take into account. Observers have been warning of a potential crisis in corporate debt since the 2010 passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which…
Asia has a structural and cyclical need for alternative credit providers; given where Asia is in the credit cycle, special situations and direct lending strategies should offer attractive risk-adjusted returns Returns for traditional Asian fixed income and credit are unattractive today. However, opportunities remain in the less liquid, underserved, and complex spheres of corporate lending…
Many factors contributed to the global financial crisis, but an excessively high level of indebtedness built up over many years was a crucial one. Although the crisis first blew up in the US housing and mortgage markets, the receding tide of liquidity revealed many other exposed debtors, especially within the Eurozone. In the aftermath of…
Chinese equities have captured headlines recently, with trading volumes surging in Hong Kong and the MSCI China Index (which tracks the performance of Chinese companies listed in Hong Kong) rising 14% over four trading days (April 8–13). The catalyst was a decision in late March by mainland Chinese regulators to allow domestic mutual funds to…
Over the past two years, India has come full circle, moving from a member of the so-called Fragile Five economies with poor macro fundamentals to one of the few emerging markets with a positive macro story. India was among the best-performing equity markets in 2014, returning 24% in US$ terms, compared to -1.8% for emerging…
Our biannual report summarizes asset allocation and total investment performance for 26 of Cambridge Associates’ UK foundation and endowment clients.
Our biannual report summarizes asset allocation for 85 of Cambridge Associates’ US-based private clients.
This year we’ve added new exhibits on asset class–level performance and outperformance versus policy benchmarks. We’ve also added exhibits and commentary that explore drivers of investment performance. As with past years, this report also reviews investment returns, asset allocation trends, spending rules, investment manager structures and implementation, and other topics pertinent to endowment managers at…