Most assets struggled in 2022. Among alternatives, commodity related categories were at the top of asset rankings (again), while cryptocurrencies and private equity were at the bottom. We expect falling inflation to pave the way for better outcomes …
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
As a category, CTAs1 offer an investment which is uncorrelated with the major investment asset classes. Some of this ability to ride through volatile markets results from their so-called ‘convexity’ to changes in underlying asset prices. This valuable convexity has
Trend-following managers are having a banner year so far in 2022 amidst a year of turmoil for traditional portfolios. Trend following has provided valuable diversification1 to investors who stuck with the strategy against losses in traditional allocations; the SG Trend
During Q3 2022, global markets continued to fall across the board, from equities, to bonds and commodities. No region, sector or style was immune to it. After a relief rally in July, equities fell, and bond yields rose as inflation
Why it’s time to look at liquid alternatives in a new light: The current market environment has not been kind to traditional multi-asset portfolios, with bonds providing little offset in an equity market brought down by rising interest rates. Central
Grondstoffen maken inmiddels zo’n 20 jaar deel uit van robuuste institutionele beleggingsportefeuilles. In die tijd is er veel veranderd. Passieve invullingen maken binnen de beleggingscategorie plaats voor alternatieve invullingen die zich over de afgelopen jaren meermaals hebben bewezen. Zowel met
Sustainable infrastructure Infrastructure is at an inflection point. In response to the rising urgency of climate action, demographic shifts and pandemic-induced fiscal boosts, we are witnessing a momentous shift in the nature of infrastructure investment. Gone is the historical focus
In 2012 Colorado and Washington State pioneered the legalization of adult-use cannabis at a time when federal cannabis legalization was still a farfetched concept. Fast forward — as of October 2022, a total of 37 states, the District of Columbia,
2021 appears to have been the turning point for a 30-year period of disinflationary global trends which led to elevated asset prices and suppressed volatility. Going forward, financial assets will need to reprice, but at levels that are unpredictable. What
UBS Hedge Fund Solutions Third Quarter 2022 The macro narrative is largely centered around central banks trying to curb inflation without slowing down the economy too much. Nevertheless, risk of global recession is rising and markets are starting to anticipate
The investable asset universe for global insurers has evolved and proliferated rapidly and continues to do so. From new asset classes and security types to numerous implementation vehicles, keeping track of it all could easily be a full-time job. Within
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
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
