January 11, 2023

During 2021-22, the results produced by active equity managers have been heavily influenced by the extent to which their portfolios have been ‘geared in’ to recent inflationary dynamics. Yet those connections are not straightforward: each period of inflation is different, and the world today is very different from the world of the 1970s-80s. With this subject remaining front and centre of equity investors’ minds in 2023—accompanied, problematically, by the spectre of recession—the time seems right to re-examine ‘winners and losers’ in inflationary conditions.

• Equity
• Monitoring

Read more: Equities and Inflation: Old Problems, New Lessons

December 01, 2022

‘Divergent’ or ‘convex’ hedge fund strategy indices posted average returns of nearly 10% through the first three quarters of 2022. Even small allocations to these strategies have provided investors with material improvements to their overall risk-adjusted returns and drawdown profiles – plus capital that can be re-deployed into traditional markets at attractive entry points. Is it time for investors to re-evaluate their hedge fund portfolios, or indeed make the move to create one?

• Diversifying Strategies
• Hedge Funds
• Portfolio Design

Read more: Clarifying the Case for ‘Convex’ or ‘Divergent’ Hedge Fund Strategies

December 01, 2022

BlackRock, Ontario Teachers’ Pension Plan and Sequoia Capital are among the named investors of FTX — the Bahamas-based cryptocurrency exchange whose collapse has made headlines across the financial press. The incident is a timely reminder of the importance of operational due diligence (“ODD”) when making investment decisions. Robust ODD assessments will likely reveal issues such as corporate conflicts of interest, weak governance, senior leadership shortcomings and inadequate cash management controls.

• Private Markets
• Governance
• Risk
• Operational Risk

Read more: FTX Debacle Highlights Key Points for Investor Due Diligence

November 11, 2022

Investors have appeared satisfied, so far, with the resilience shown by their infrastructure portfolios through the turmoil of 2022. The combination of inflation sensitivity, low real interest rates and robust buyer appetite have supported a sense of continued momentum in the sector. Yet mounting concerns are prompting a re-evaluation of exposures and expectations. What should investors watch out for in the current climate?

Read more: Infrastructure Investment at an Inflection Point