Fed Hikes Another 0.75% and Signals More Tightening to Come
The Federal Reserve announced its third consecutive interest rate increase of 75 basis points (bps) today, bringing the Fed funds target range to 3.00%–3.25%.
US
Endowments Quarterly: Second Quarter 2022
Most endowments and foundations are on pace for their lowest fiscal year (June 30) returns since 2009. The various methods for reporting private investments play a significant role in the range of returns we have seen across our preliminary universe thus far. Our quarterly report investigates this topic and summarizes preliminary June 30 asset allocation and total investment performance for 378 of Cambridge Associates’ US endowment and foundation clients.
Is the United States in a Recession? Labor Market Focus
Currently, there is an active debate about whether the United States is in a recession. Two quarters of negative GDP fits one definition of a recession; however, the National Bureau of Economic Research looks at a greater expanse of data before making its assessment. In this note, we examine some of this data, dig into other line items in the national accounts, and look at historical trends in employment around recessions to further our understanding and put today’s labor market into context.
US Manager Universe Statistics: Second Quarter 2022
This publication presents manager performance for 37 asset classes and substrategies, showing the median, mean, and key percentiles of return. Relevant indexes for each asset class are also included to provide market context.
US PE/VC Benchmark Commentary: Calendar Year 2021
In 2021, the US private equity and venture capital indexes posted their highest calendar year returns since 1999, potentially signaling a market peak and the end of over a decade of steady growth. For the year, the Cambridge Associates LLC US Private Equity Index® returned 41.3% and the Cambridge Associates LLC US Venture Capital Index® gained 54.6%.
VantagePoint: Have US Equities Hit Bottom?
Given the uncertain economic and profit environment, have markets bottomed yet? In this edition of VantagePoint, we address this question by comparing current market conditions to those of historical bear markets, evaluating economic conditions to better understand near-term recession prospects, and considering how much further the market may have to go based on historical precedents.
Spending Policies and Practices: Fiscal Year 2021
Annual distributions from the endowment are a source of supplemental operating revenue for most endowed institutions. An institution’s endowment spending policy provides a basis for the calculation of the annual distribution, serving as a bridge that links the long-term investment portfolio and the enterprise. The data and analysis in this report review the various spending rule types used among our endowed clients. Also included are analyses on the endowment’s support of operations and effective spending rate.
Foundation Annual Flash Statistics: Calendar Year 2021
The Foundation Annual Flash Statistics Report provides a first look at the results of our 2021 Foundation Annual Investment Pool Returns survey. Included in the analysis are a summary of investment pool returns, asset allocation, and returns after spending for 111 foundations. Additionally, the report provides detailed data by institution on asset allocation. Look for our full annual analysis in the upcoming Foundation Annual Investment Pool Returns report.
Endowments Quarterly: First Quarter 2022
Our quarterly report summarizes asset allocation and total investment performance for 371 of Cambridge Associates’ US endowment and foundation clients.
Fed Tightens by 0.75% and Projects Softer Economy
The Federal Reserve announced that it was raising the target range for the Fed funds rate by 75 basis points to 1.50%–1.75% and made wholesale changes to its summary of economic projections.