Insights

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

The Work of a Lifetime: Spend-Down Funds

An increasing number of institutions and families are electing to spend down their assets during a limited time period. Why? Some causes—such as climate justice—feel urgent to donors and they respond with more immediate action. Other donors believe greater financial support today through a spend-down fund compounds their impact, leading to better outcomes in totality compared to providing […]

January 2023

Global ex US PE/VC Benchmark Commentary: First Half 2022

According to Cambridge Associates (CA) indexes, private equity and venture capital (PE/VC) in the developed markets underperformed those in emerging markets in first half 2022. The Cambridge Associates LLC Developed Markets ex US PE/VC Index returned -11.1% in the period, in USD terms, and -3.3% in euros. Because returns are measured in US dollars, the […]

January 2023

US PE/VC Benchmark Commentary: First Half 2022

In first half 2022, US private equity and venture capital broke their trend of sustained positive performance as the downturn in the public markets spilled over to privates. For the six months ended June 30, 2022, the Cambridge Associates LLC US Private Equity Index® returned -5.3% (-0.4% and -5.0% in first and second quarters, respectively) […]

January 2023

Will Monetary Policy Become Less of a Headwind for Markets in 2023?

Yes. Markets will be less vulnerable to rising rate risk next year, as the aggressive tightening that has weighed on markets for much of 2022 has moderated more recently since inflation has slowed. However, we see a pause in tightening as more likely than a pivot to easing in 2023 because inflation will be slow […]

December 2022