May 11, 2020 Shock and Awe in Private Markets by Alexander Chaloff Following the Global Financial Crisis, private investments delivered equity-like performance with differentiated returns that resulted in lower volatility. But the end of the longest public market bull market in history is forcing private investors to confront a new beast—a market downturn. Will the principles of private market diversification hold? Alternatives, Coronavirus Likes 0 SHARE Bookmarks
April 21, 2020 A Riskier World Has Investors Revisiting Hedge Funds by Brian Briskin, Michael Heneghan, Wrug Ved As the global pandemic unfolded, daily equity market gyrations became the norm, unsettling many investors. With risk suddenly back in the equation, how should you combat volatility? (Re)consider hedge funds. Alternatives, Coronavirus, Volatility Likes 0 SHARE Bookmarks
March 23, 2020 As Crisis Hits, Private Equity Stands Ready by Alexander Chaloff The COVID-19 driven market sell-off has made the cash on hand at PE firms that much more valuable. What seemed like a problem just weeks ago, is a blessing today. Alternatives, Coronavirus, Equities Likes 0 SHARE Bookmarks
March 16, 2020 PE Mythbusters: Since When Is Having Too Much Cash a Bad Thing? by Alexander Chaloff There are trillions of dollars of dry powder standing ready to be put to work by private equity. With this much cash needing to be invested by funds eager to generate returns and associated fees, some fear it’s a crowded trade and may cause them to chase bad deals. We disagree. Alternatives Likes 0 SHARE Bookmarks
January 08, 2020 2019: An Unexpected Year by Beata Kirr, Alexander Chaloff 2019 was a year of the unexpected. What are the top five lessons learned? Alternatives, Brexit, Equities Likes 0 SHARE Bookmarks
December 10, 2019 Is Investing in Gold Worth Its Weight? by Vinod Chathlani Few assets have as much polarized debate and disagreement on their role as an investment than gold. “Gold bugs” tout its reliability as a store of value, while skeptics view gold as a “barbarous relic” whose value is driven primarily by sentiment and occasional mania. Alternatives, Asset Allocation, Economics, Inflation Likes 0 SHARE Bookmarks
November 14, 2019 Low Rates May Be Worrying You, But Private Markets Use Them To Their Advantage by Alexander Chaloff There are currently 15 countries with interest rates lower than 1%, and more than half of those are negative. In the US, despite 10-year Treasury yields moving 40 bps higher since the beginning of September, rates are still historically low. And if the economy slows more than expected, they may move down again. What could these low interest rates mean for your investments? Alternatives, Wealth Planning Likes 0 SHARE Bookmarks
October 09, 2019 Can Alternative Investments Provide a Boost for Nonprofits? by Clare Golla Over the last decade, investment policies reflected asset allocation rules written at a time when stock returns were strong, and volatility and inflation were unusually low. But geopolitical uncertainty and rising inflation can cause markets to become more volatile. And that means the asset allocations that worked well during the last decade probably won’t produce the same results in the next one. Alternatives, Asset Allocation, Endowments & Foundations Likes 0 SHARE Bookmarks
September 25, 2019 Sizing an Alternatives Allocation Starts with Spending by Alexander Chaloff One of the key determinants for selecting the right alternatives allocation is spending. Most alternative assets are illiquid, which means they cannot be readily sold for cash. Because of this characteristic, investors need to select an alternatives allocation that does not put their spending at risk. Alternatives, Asset Allocation, Wealth Planning Likes 0 SHARE Bookmarks
August 14, 2019 Don’t Fear Illiquidity (Embrace It!) by Alexander Chaloff Illiquid alternatives are investments that are not easily traded or exchanged and where investors do not have access to their capital for years. In fact, some alternatives hold investors’ capital for as long as a decade. That’s one of the reasons some investors shy away from them. The long lock-up worries investors, especially when the markets turn down. But is that fear justified? In a word: No. Illiquidity should not be feared—for three reasons. Alternatives, Asset Allocation Likes 0 SHARE Bookmarks
June 12, 2019 The Staying Power of Commercial Real Estate by Greg Young The US is approaching the longest economic recovery in history, and some investors are worried that a slowdown is on the horizon and the commercial real estate cycle is nearing an end. We agree that an economic slowdown will happen at some point, but think that it matters less for long-term investors in private commercial real estate. Alternatives, Real Estate Likes 0 SHARE Bookmarks
May 21, 2019 US Housing Reform and the Future of CRTs by Michael S. Canter, Janaki Rao Credit risk-transfer securities have made the US mortgage market safer by shifting default risk from taxpayers to private investors. The latest attempt to overhaul the housing finance system isn’t likely to change that. Alternatives, Fixed Income, Policy & Regulation Likes 0 SHARE Bookmarks
March 20, 2019 A Framework for Allocating to Illiquid Investments by Alexander Chaloff The traditional asset allocation model considers only one dimension— the type of asset. For years, this model was effective, before a proliferation of alternative products widened the investment choice, and advanced technology allowed for more precise models. Today, there’s a better way. Alternatives, Asset Allocation Likes 0 SHARE Bookmarks