Executive summary The second quarter of 2022 brought an expected continuation of market tightening in some parts of the US venture capital (VC) ecosystem that began to surface in Q1 2022. However, other areas of the VC cycle seem to
The alternative fixed income asset class is highly diverse, embracing private debt, consumer loans, mortgage investments, insured loans, loans to small and medium-sized enterprises (SMEs), infrastructure debt and asset-backed securities (ABS). These assets can offer enhanced yields compared to government
Alts in Agregate Real Estate Infrastructure Private Markets Hedge Funds
After several decades of riding a government bonds bull market, investors are now looking for alternative drivers of return. Commodity Trading Advisor (CTA) strategies, with their ability to make gains in rising, as well as falling markets, have historically been
Including: Long-Term Capital Market Assumptions Short-Term Tactical Outlook This report presents Cliffwater recommendations for asset class return and risk (standard deviation) assumptions, intended for asset allocation studies that set long-term portfolio asset class targets. While these forward-looking or “expected” asset
Alts in aggregate Real estate Infrastructure Private Markets Hedge funds
Commodities had a party in 2021, but platinum and palladium never made it. But are the two poised to make a return in 2022? Is there light at the end of the tunnel? When we last wrote about them in
Monthly Investment Outlook October 2021 Global equities and global bond prices fell in the month as the seasonally weak, worst month of the year (September) lived up to its reputation. With the Fed and the European Central Bank both signalling
2022 Global Alternatives Outlook: It’s all a matter of perspective. As we enter 2022, there is a real risk of missing the forest for the trees. Up close, the “trees” in the 2022 outlook are clear. Consumers will keep spending.
BII Global outlook We are entering a new market regime unlike any in the past half century: We see another year of positive equity returns coupled with a down year for bonds. The powerful restart of economic activity will be
ADDING RESILIENCE INTO PORTFOLIOS Global economy / Asset allocation Facing energy and inflation shocks, global activity is expected to moderate in the coming quarters. Downside risks to growth have grown due to lower visibility, the global energy shock leading to
As of November 30, 2021
Whilst the definition is fairly broad, a traditional DMAC investment approach aims to build a balanced portfolio of directional trades that mix traditional and idiosyncratic premia (betas) by taking risk-on/risk-off positions using fundamental macro and market analyses that are not
How CTAs work and what they can do in the age of low interest rates Commodity Trading Advisor (CTA) strategies are an investment success story. They have attracted large inflows of assets, drawn in by their ability to generate returns
Getting Ready for Growth Many alternative asset managers will have to adjust course to capitalize on greater investor demand, emphasizing bespoke solutions, compelling strategies and greater transparency Strategy and Competition The majority of alternative asset manager respondents expect increased allocations
A gradual transition toward a more 'normal' mid-cycle… We think global growth has peaked but will remain above average, boosted by broadening consumption and surging capex. A return to more 'normal' has already started but will likely take more time
The primary focus of this analysis is a contemporary evaluation of alternative investments represented by CTAs, Risk Premia, and Hedge Funds. We use Risk Premia as a proxy for passive/semi-passive investments in alternative strategies and contrast that with the active
The past month has seen geopolitics move back into the headlines as the United States and its allies made a final withdrawal from Afghanistan. Reflecting on the often messy resolution of military conflicts over the ages, the concept …
Macro managers' returns are positive year-to-date but are still lagging their benchmarks. Their alpha was hit twice by the end of March and June. Managers adequately positioned early this year on rising yields and tapering through bond shorts and steepeners.
Trading conditions in China have severely deteriorated. After reaching their peak by mid-February, stocks lost earlier gains in March, on evidence of a plateauing economy and as stretched investors' positioning unwounded. Chinese markets were then stuck in a volatile trading
Let’s make an (infrastructure) deal. On June 24th, the bipartisan Senate coalition reached a compromise on a US$1.2 trillion infrastructure package over the next eight years, which includes
Since March and April tapering and inflation concerns eased up, U.S. value stocks have regained their lost ground and are outperforming growth stocks by 40% since the vaccine announcement late 2020. How long the value rally will last is yet
The specter of market volatility brought on by large-scale events, such as global pandemicrelated lockdowns in early 2020, has had a strong influence on investor approaches to their portfolios. Investors are responding by building resilience into their portfolios to navigate
Q1 2021
We have seen an exceptionally sharp pickup in growth expectations, centered on the United States. Economists have adopted a narrative of a rapid fiscally fueled expansion, which supports a strong rebound in corporate earnings. Some of the drivers are global in nature, such as the continued rollout of vaccines that appear to be having the desired effect …
Private debt and real asset markets can offer investors meaningful return potential along with diversification. David Bouchoucha, head of private debt and real assets, discusses the opportunities of this alternative investment segment. He underscores how important sustainability is in constructing a resilient portfolio.
What a year 2020 was in markets. From the Corona Crash in March to VIX highs in the 80s, to tech stocks doubling and tripling from those lows. From retail traders driving the market, to stimulus checks holding the market
European Gazette | Autumn 2020 While political risk, a second Covid-19 wave, lower economic activity and suppressed inflation might trigger a short-term sell-off, in the medium term a high equity risk premium and low rates will support equities After a
Before researching whether we can use this outperformance to strengthen our Alternative Beta strategy, we first assessed whether the differences in "performance might result from composition biases between the Flash and Final update."
Amid the sound and fury of renewed Covid-19 lockdowns across Europe, global equities took a plunge at the end of October, bringing the MSCI World down -3% for the full month. Bonds did not provide much protection, as fiscal stimulus
Contrary to common fears, Covid-19’s long-term effect on office demand might actually be accretive, or at least not destructive. Many observers have claimed that the pandemic has revealed city-center offices to be relics of the 20th century. We take a
The current challenging market environment suggests a greater need than ever for alternatives. Hedge funds, which target differentiated, positive absolute returns, provide clear potential benefits. However, institutional investors have …
#37 Next week, a lot of webinars are coming up. For example, on Tuesday Jupiter AM hosts a webinar about “The Great Inflation Debate“, on Wednesday UBP hosts a webinar on “Small Caps Specialties” and on Thursday Krane Shares hosts
Narratives, US election and CTAs The US presidential election is less than two months away. As usual, many observers label this election as perhaps the most important one ever. This time, it might very well be true. Many observers are
Alternatives AUM exceeds $10tn milestone amid challenging market conditions The alternatives industry has just set a new record: global assets under management (AUM) have surged to $10.31tn. We’re now well on our way to meeting Preqin’s 2018 forecast of $14tn
“It’s an insurance policy in case inflation comes back again as it did in the 1970s. I would say that if that’s a sensible thing to do, then, certainly to have 1 to 2% of your assets in Bitcoin makes
Uncommon truths What role can alternative assets play in our model asset allocation framework? We look at real estate, commodities, private equity, hedge funds, diamonds and fine wines. We think some are core assets, others tactical while some have no
July 2020 – Alternative Fixed Income and R.I. series – Webinar 3 The downturn in financial markets as a result of the coronavirus crisis reached a turning point in March. Since then, markets have recovered strongly, with a recovery of
July 2020 – Alternative Fixed Income and R.I. series – Webinar 2 The downturn in financial markets as a result of the coronavirus crisis reached a turning point in March. Since then, markets have recovered strongly, with a recovery of
Where are the opportunities in Asset Backed Securities? …that can meet ESG risk and positive impact objectives July 2020 – Alternative Fixed Income and R.I. series – Webinar 1 The drawdown in the markets provoked by Covid-19 reached its lowest
Market Insights Powerpoint by JP Morgan Asset Management
Market conditions improved in the wake of the aggressive Federal Reserve announcements to tame risks in the financial system (link). The MSCI World bottomed on March 23rd and rose more than 20% since then, leaving the broad equity market benchmark
The fourth quarter ended on a high note with US equities marching to new record highs. It closed a year where the narrative mostly had been pessimistic. Uncertainties around trade tensions, Brexit, political drama and recession fears have dominated. The
Global Asset Allocation The coronavirus outbreak has become a worldwide health crisis, impacting lives across the globe. The uncertain extent of the outbreak has caused a sell-off in risk assets. Many have compared this health emergency with the Severe Acute
Risk assets have largely shrugged off recent headwinds on the back of robust macro and corporate dynamics in the U.S. The Q4-2019 earnings season delivered better than expected outcomes especially in the Technology sector. Meanwhile, labor market conditions remain buoyant
Introduction All the major asset classes ended 2019 on a positive note; equities rallied particularly strongly, especially growth stocks. Part of the reason last year was so robust was the rebound from the awful fourth quarter of 2018. Despite the
AQR White Paper One of the most important topics on investors’ minds following the Global Financial Crisis was how to protect their portfolios from the next crisis. Our paper "Chasing Your Own Tail (Risk)" was our response.1 In it, we
For investors, last year was a heady mix of trade wars, Brexit upheaval, economic pessimism, historically low interest rates and positive, but volatile, markets. It’s therefore reasonable to ask – are we in for more of the same in 2020?
Climate change innovators: spotting the sleeping giants Solving the climate crisis is likely to take innovative technology, scalable deployment and a bit of luck. Many envision climate saviors coming in the form of plucky startups. But alternative data is hinting
Allocation views Our view of global growth has been getting more optimistic over the last few months as signs of stabilization have appeared in many economies. Areas that were notably weak, such as manufacturing in Germany, have turned up somewhat
