Insights

VantagePoint: Too Much Optimism Amid Uncertainty

What a difference a couple of months makes. Economic conditions have improved since year-end 2022 due to the heady brew of China lifting its zero-COVID policy, Europe navigating its energy crisis better than anticipated, and cooling inflation in the United States. In early February, an exceptionally strong US labor report and a sharp rebound in […]

February 2023

Climate Tech’s Evolution: The Maturation to a Competitive, Returns-Focused Thematic Investment Sector

Climate technologies (climate tech) have gained popularity among investors in recent years. These technologies encompass a broad set of assets that seek to provide solutions to the challenges associated with climate change. Such assets often include contribution to decarbonization of the global economy and incorporate investment themes such as the energy transition, sustainable food systems, […]

February 2023

ASEAN Equities: Surprising to the Upside

Southeast Asia, also known as ASEAN (The Association of Southeast Asian Nations), was a relative safe haven for investors in 2022. In local currency terms, ASEAN equities returned -0.1% in 2022, outperforming Asia ex Japan (AxJ) and developed markets (DM) equities, which were down more than 15%. While ASEAN currencies have been under pressure, the […]

February 2023

Climate Solutions Investing: Your Toolbox for Building a Diversified Investment Portfolio

Climate change is one of the most pressing global challenges, but it also presents significant investment opportunities in the coming decades. All investors should consider exposure to solutions that help mitigate the systematic risks of climate change, as they will benefit economically from a world that is seeking to decarbonise and become more resource efficient. […]

February 2023

Is January's US Small-Cap Equity Performance Sustainable?

Yes, we expect US small-cap equities will outperform US large-cap equities this year. Our view is based on the belief that the large valuation spread that exists will likely narrow and that large company earnings are likely more at risk of missing expectations than small company earnings. To overweight small-cap equities, we recommend funding it from […]

February 2023

From Policy to Implementation: A Net Zero Playbook for Investors

The scientific community tells us that “climate change is a threat to human well-being” and that the window of opportunity to “secure a livable and sustainable future for all” is rapidly closing. If we fail to act, there will be catastrophic impact on the global economy, asset values, and portfolio returns. This urgency is stimulating […]

February 2023

Sustainable and Impact Investing 2022: Insights and Perspectives

Overview Of the 144 Cambridge Associates clients that responded to the 2022 survey, 93 reported engaging in sustainable and impact investing (65%)—up 4 percentage points relative to 2020 and a significant increase of 29 percentage points relative to our 2018 survey results. Foundation and college & university respondents have the highest rates of integration of […]

January 2023

Are US Equity Investors Too Sanguine About US Economic Prospects?

Yes, it is likely that the “softish landing” implied by forward consensus earnings expectations will fail to transpire. In contrast, we anticipate a recession, given the decline in leading economic indicators and our view that the Federal Reserve will not be quick to cut rates to support activity. After adjusting downward in recent weeks, consensus […]

January 2023