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
February 21, 2019 Enhancing Your Investment Portfolio with Private Equity by Alexander Chaloff Most investors try to diversify their investments—by allocating money to several asset classes like stocks and bonds, in various geographies—the US or foreign markets, for example—or by choosing stocks in many industries. Another way is to seek investments outside the public markets. Private equity is one such place. Alternatives, Wealth Planning Likes 0 SHARE Bookmarks
January 11, 2019 2018 Lessons Learned: Tenets of Investing Ring True, Time and Again by Kathleen M. Fisher The beginning of the year is often the time when investment strategists opine on the outlook for the year ahead. Although 2018 proved, once again, how futile such short-term forecasts can be, last year’s markets affirmed some of the evergreen tenets of investing. Alternatives, Equities, Fixed Income, Wealth Planning Likes 1 SHARE Bookmarks
December 17, 2018 Is the US Housing Market Headed for a Correction? by Michael S. Canter, Janaki Rao, Monika Carlson The median price of a US single-family home has risen just over 40% since the last housing-market crash. While newspaper headlines may put readers on edge, our analysis indicates a gradual slowdown, not a bursting bubble—in most regions. Alternatives, Fixed Income, Rising Rates Likes 0 SHARE Bookmarks
February 13, 2018 Why the US Government Should Guarantee Your Mortgages by Michael S. Canter, Janaki Rao Congress may finally be inching toward an overhaul of the US housing finance system. That’s good. But getting reform right is more important than getting it done. To us, that means ensuring the government retains a clearly defined role in the mortgage market. Alternatives, Fixed Income, Policy & Regulation Likes 1 SHARE Bookmarks
January 17, 2018 Will Tax Reform Derail CRTs? Don’t Bet on It by Michael S. Canter, Monika Carlson, Janaki Rao Investors seeking floating interest-rate exposure and high yields are increasingly turning to credit risk–transfer securities (CRTs), a fairly new type of mortgage-backed bond. But could US tax-code changes hurt the housing market and, by extension, CRTs? We don’t think so. Alternatives, Fixed Income Likes 0 SHARE Bookmarks
September 07, 2017 Positive Developments for Hedge Funds by Stuart Davies, Vikas Kapoor Widespread criticism of the hedge-fund industry has spurred positive changes, the market environment is improving, and new ways of achieving some return streams have become available. Alternatives, Wealth Management, Wealth Planning Likes 2 SHARE Bookmarks
May 18, 2017 Don’t Wait for Rough Markets to Take a Look at Alternatives by Christine Johnson, Richard Brink Volatility is remarkably low today, but it’s not likely to stay that way. Alternatives have the potential to provide diversification and reduce risk when markets get stormy again. But what’s the best way to design an alternatives allocation? Alternatives Likes 0 SHARE Bookmarks
March 17, 2017 Micro-Cap Banks: An Evergreen Alpha Source by Michael Howard In a recent blog post, we explained why we think tiny banks and thrifts offer a sizable short-term opportunity. We also think this under-covered group of stocks provides an evergreen source of potential alpha. Alternatives, Equities, Wealth Management, Wealth Planning Likes 0 SHARE Bookmarks
February 21, 2017 Life After Beta: Are You Asking the Right Questions About Alternatives? by Richard Brink, Christine Johnson Investors have had mixed experiences with alternative investments lately, as the market landscape has made it hard for managers’ skills to shine. It’s time to ask some pointed questions to get the right fit. Alternatives Likes 0 SHARE Bookmarks