Insights

Rising Rates and the Implications for Fixed Income

In this paper, we analyze the drivers behind the recent rise in yields and compare the current bond sell-off to major bond sell-offs of the past to assess whether the rise in yields can continue and the implications for fixed income.

May 2021

Will the Global Equity Rotation from Growth Stocks to Cyclicals Persist?

Yes, we expect it will. We anticipate global inflation expectations will remain stable or increase modestly amid rising economic growth, which would allow the equity market rotation into cyclicals to continue.

May 2021

US Real Estate Outlook: Patience Required

This paper discusses recent trends in US commercial real estate fundamentals and looks ahead to what might be in store for the remainder of 2021. Overall, we are reluctant to sound overly bullish about the broad asset class, as the outlook for some sectors is unclear. Still, for investors looking to immediately deploy capital, we highlight two categories of opportunities.

April 2021

VantagePoint: Reflation, Inflation, or More of the Same?

In this edition of VantagePoint, we review the drivers of inflation globally and conclude that widespread inflation concerns are likely overdone. For investors concerned about the risks of inflation, we refresh our analysis on the complex relationship between asset classes and inflation and dig deeper into the implications of higher inflation on equities.

April 2021

Does 2021 Look Like a Good Year for Active Equity Managers?

Active equity managers tend to perform better when the average stock within a market capitalization–weighted index outperforms the index itself.

April 2021

An Investment Perspective on Healthcare System Mergers

During the past decade, nonprofit healthcare providers have undergone a wave of accelerating consolidation. When systems combine, the new entity created will have new financial health metrics. A fresh review of how a transaction will impact the newly combined long-term investment pool (LTIP) is crucial. This paper examines key variables to assess and specific examples of how a LTIP might restructure post-merger.

April 2021

Endowment Radar Study 2020: The Endowment as Ballast

While colleges and universities have faced several financial fissures due to the disruptions of COVID-19, their endowments have been a source of financial stability. Four key financial indicators tell this story: operating margins were compressed, tuition discounts grew, institutions borrowed more debt, and endowment spending was consistent. In this note, we review these financial pressures and the endowment implications that emerged in Cambridge Associates’ second annual Endowment Radar Study of private college and university finances.

April 2021

Is It Now Growth at Any Price?

In private investing, it appears that way, but a deeper look suggests there could be a method to the valuation madness.

March 2021