Mind the Inflation Gap: Hedging with Real Assets
Inflation expectations are skyrocketing. The University of Michigan Survey of Consumers shows that median forecasts jumped to 6.5% in April from 3.3% in January, and professional ...
Alternative Investments
Drowning in the Private Equity Pool
What’s most surprising about aggregated private market performance calculations? The widespread “tolerance” of mathematical errors, gross inaccuracy, and representativeness among ...
Buyers Beware: 7 Red Flags That Signal a Private Market Reckoning
In the history of every great catastrophe, you will find some masterly bit of stupidity set fire to the oil-soaked rags. —EDWIN LEFEVRE, author of Reminiscences of a Stock ...
Higher Interest Rates: Some Hedge Fund Strategies May Benefit
Where are rising interest rates a good thing? With inflation at 40-year highs, the US Federal Reserve lifted its target range for the federal funds rate by 25 basis points (bps) ...
The Private Capital Wealth Equation, Part 1: The Controls Variable
Investment performance is assessed on a risk-adjusted basis. But with financial markets growing ever more competitive, private capital fund managers have developed tools to reduce ...
Book Review: Asset Allocation | CFA Institute Enterprising Investor
Asset Allocation: From Theory to Practice and Beyond, Second Edition. 2021. William Kinlaw, CFA, Mark Kritzman, CFA, and David Turkington, CFA. Wiley. To build a robust ...
The Private Capital Wealth Equation, Part 2: The Economics Variable
What makes financial capitalism so compelling is the idea that modern fund managers fully participate to the upside of their investment decisions with little exposure to the ...
Not All NAVs Are Created Equal
The debate about private market fund valuations and volatility has returned to center stage. To quote Mohamed El-Erian, some private equity managers believe “their asset class ...
Crypto Tokens: Does Security Selection Matter?
Introduction A falling stock market is not bad for everyone. Sure, many investors lose out as their portfolios decline in value, but those who are just starting to invest or have ...
Digital Gold or Fool’s Gold: Is Crypto Really a Hedge against Equity Risk?
Crypto enthusiasts often claim that digital coins and tokens are uncorrelated with equities and can provide a safe haven amid stock market crashes. The assumption is that ...
“Round-Tripping” Stocks and the Absurdity of Hedge Fund Fees
Hedge fund performance fees, I believe, are a rip-off for clients. Few phenomena illustrate this better than “round-tripping” stocks. These are stocks that, over the course of ...
Pensions, Crypto, and Trust: Digital Assets and Retirement Funds
Retirement planning is the primary objective of retail investors. Indeed, 47% of respondents in the 2022 CFA Institute Investor Trust Study indicated saving for retirement was their ...
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