Over the past four decades, institutional investors have implemented newer and more dynamic strategies in their portfolios in an effort to boost investment returns. During the same period, many investors reduced allocations to fixed income while increasing allocations to equities and alternative investments, including private investments (PI), hedge funds, and commodities. Private equity (PE) investments […]
May 2023
Private equity (PE) secondary funds can provide several benefits to investors, including an accelerated pace of distributions relative to traditional primary PE fund investments. In addition, they can help investors enter new strategies, access top managers, and reduce blind pool risk. In this piece, we review secondary funds and their benefits by answering seven key […]
May 2023
Yes, investors should overweight US small-cap stocks, given valuations remain attractive and will provide a cushion if an expected recession unfolds. Banking sector turmoil and the sensitivity of more leveraged companies to higher interest rates have weighed on sentiment, but corporate fundamentals and balance sheets are starting at healthy levels. Investors fleeing to the presumed […]
May 2023
Investors are understandably concerned about US commercial real estate (CRE), given the rapid changes in interest rates since the beginning of 2022 and the recent banking sector stress. Indeed, the Federal Reserve now expects a recession, which we anticipate will lead to declines in real estate prices in the near term. In the medium term, […]
May 2023
No, we expect that while the US dollar should decline from its current elevated level over the medium term, there are factors that will continue to provide it with support in the short term. If our expectations are met, later this year or early next year should be an opportune time to consider positioning portfolios […]
May 2023
Inflation is having a moment. After laying low and playing a minor role in institutional financial decisions for decades, inflation has soared, dominating headlines and raising expectations for future costs. In addition to its impact on financial markets and investment portfolios, inflation increases the costs of delivering the nonprofit mission and makes it more challenging […]
May 2023
No. We think most investors should not alter portfolios based solely on debt ceiling risks. Instead, they should remain focused on the long term and rely on the diversification in their existing portfolios. But given the potential for additional stress in funding markets, investors should ensure they have ample liquidity to meet upcoming capital calls […]
May 2023
India has garnered significant investor attention, given its recent economic and stock market outperformance, its large and growing population, and its rapid ascent as a manufacturing alternative to China. But should investors buy the hype surrounding Indian equities? We think India’s bright economic prospects have the potential to drive strong equity market returns in the […]
May 2023