Industry Voices

  1. Arbageddon: One day, three deals, all spreads

    trueOn Aug. 6, the first broad-based merger spread widening occurred since the fall of 2011. The breakup of three announced deals that day widened spreads and provided a unique entry point to capture value through the anticipated convergence of these spreads.

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  1. Higher yields, without increased risk

    trueWith equity markets at a historical peak and interest rates still low, rebalancing a portfolio is a painful proposition. Rather than investing in traditional fixed income, however, institutional investors can allocate to private credit, which offers higher yields without added risk

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  2. Risk allocation must replace asset allocation

    trueThe investment industry has made great strides in using technology to modernize the investment process. The growth of exchange-traded funds is testimony to the desire to increase liquidity and transparency, and lower transaction and management costs. Transaction fees are ever shrinking. Information ...

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  3. Taking a wide-angle view of the outsourced CIO

    trueIt pays to hire an OCIO who understands the priorities and workings of the institution first and only then develops a custom investment strategy to fit.

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  4. Inflation protection — better to be safe, not sorry

    trueSometimes it takes a crisis to make us all realize that, yes, inflation can always be lurking just over the horizon.

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  5. Rerisking without regret

    trueWith new actuarial tables threatening lower funding status, pension investors should consider reversing the course of de-risking embedded in their glide paths and increasing their allocation to return-seeking assets.

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  6. Navigating the fixed-income market: The calm before the storm

    trueThere are no safe harbors at present in fixed-income investing.

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  7. Emerging market portfolio globalization: The next big thing

    trueOne of 2014's great investment surprises has been emerging markets equity performance. Notwithstanding negative news (from Ukraine to China, Turkey to Thailand) and record foreign investor outflows, MSCI EM equity is up 5% in the first half of the year in line with MSCI All Country World Index ...

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  8. Co-investments: More bang for your buck

    truePrivate equity has been producing superior risk-adjusted returns, enticing investors to look no further than the asset class to get more bang for their buck. And, private equity fund sponsors are capitalizing on this to convince investors to put more dollars behind them. The strategy which is ...

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  9. Under the hood of hedge fund leverage

    trueOne of the key differentiators between hedge funds and other investment vehicles is the use of leverage. Leverage can be your best friend one day, and your worst enemy the next. Everyone knows that leverage will accentuate both gains and losses. However, less is known about how hedge funds actually ...

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  10. The one question investors can take off the table

    trueOne important, and often underappreciated, benefit of absolute-return strategies is that the asset allocator should have to answer only two of the three typical questions when deciding to make an allocation.

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  11. Master limited partnerships positioned to benefit from rising U.S. energy production

    trueThere is no denying master limited partnerships have had a good run in recent years. A unique asset class in the investment landscape, MLPs are defined by the legal requirement that they derive most of their cash flows from real estate, natural resources and commodities. One of the key advantages ...

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  12. Hedge fund replication: Is it appropriate for you?

    trueHedge fund replication products are a classic example of financial innovation. However, while replication products are a “net-net” positive innovation, they are neither simple to understand, homogenous in form, nor appropriate in every situation.

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  13. The efficient market hypothesis is our North Star

    trueCliff Asness, writing in Industry Voices, calls the efficient market hypothesis the investment management industry's guiding light.

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