Worries over the health of US credit markets have risen in recent months, with numerous reports highlighting the growing vulnerability of indebted companies (and thus investors) to rising rates and a potential turn in the economic cycle. This paper provides our updated thoughts across US credit markets, as well as some tactical tilts investors could employ to help navigate a few of these headwinds.
Though it is getting late in the cycle, there is nothing to indicate a recession is imminent; however, maintaining appropriate levels of diversification and liquidity to meet cash requirements during periods of stress is becoming increasingly important.
US private equity and venture capital returns were both in the double digits for calendar year 2017, but the divide between the results for the Cambridge Associates LLC indexes for the two asset classes was fairly wide.
This chart book presents representative long-only and hedge fund manager performance for second quarter 2018. The median US Small-Cap Growth manager posted the highest median return for both second quarter 2018 (8.7%) and the one-year period ending June 30, 2018 (25.4%). The median Emerging and Frontier Markets Equity manager posted the lowest median return for second quarter 2018, returning -8.6%, and the median Emerging Markets Debt manager suffered the worst performance for the one-year period ending June 30, 2018 (-1.6%).
We don’t believe so—even though fiscal stimulus, corporate tax cuts, international trade tensions, and US dollar strength all seem to be advantageous for US small caps relative to US large caps.
Our quarterly report summarizes asset allocation and total investment performance for 405 of Cambridge Associates’ US endowment and foundation clients. In addition, the report contains tables and charts that show returns and asset allocation by peer type and asset size.
This chart book presents representative long-only and hedge fund manager performance for first quarter 2018. The median Global ex US Bonds manager posted the highest median return for first quarter 2018, returning 3.5%. Global ex US Small-Cap Equity managers posted the best returns for the one-year period ending March 31, 2018, with a median return of 26.4%. The median US REITs manager posted the lowest median return for both first quarter 2018 (-6.5%) and for the one-year period ending March 31, 2018 (-1.1%).
Retail is changing and some companies face challenges, but this theme has probably been overhyped, and implications for investors are limited.
Our biannual report summarizes asset allocation for over 160 of Cambridge Associates’ US-based private clients.
Our quarterly report summarizes asset allocation and total investment performance for over 408 of Cambridge Associates’ US endowment and foundation clients. In addition, the report contains tables and charts that show returns and asset allocation by peer type and asset size.