AllAboutAlpha

By Stephen L. Nesbitt – Chief Executive Officer, Chief Investment Officer of Cliffwater.

Private equity allocations by state pensions produced a 11.0% net-of-fee annualized return over the 23-year period ending June 30, 2023, exceeding by 4.8% the 6.2% annualized return that otherwise would have been earned by investing in public stocks.

By Sam Holt, CFA, and Alex Billias, CFA, - Principal and Chief Operating Officer, respectively, - at the private markets consulting and advisory firm Bella Private Markets.

By Charles Skorina, Managing Partner at Charles A. Skorina & Company.

I worried about so many things during my life, but the really tough hits I never saw coming. — Anonymous

Our 2023 endowment performance report features ten-year investment returns for one hundred thirty-eight US and eight Canadian institutions, the latest available.  In addition, we include one-year returns for 2023, 2022, 2021 along with AUM, as of their respective fiscal year-ends.

By William (Bill) J. Kelly, CAIA, CEO of the CAIA Association.
 

By Donald A. Steinbrugge, CFA – Founder and CEO, Agecroft Partners.

By Joachim Klement, Head of Strategy, Accounting, and Sustainability at Liberum Capital.

By David Stevenson, a London-based financial writer for PitchBook News, covering private equity.

When KKR closed its sixth European buyout vehicle on $8 billion, it did so with around $1 billion of its own capital contributing to the fund corpus. The New York-based firm is one of many GPs pumping more of their own money into their funds.

By Linus Nilsson, founder of NilssonHedge, a hedge fund database.

Short Term Trading is one of the elusive trading strategies within Managed Futures. Often managers have been able to deliver uncorrelated historical returns. Once the manager grows above a certain limit or becomes known to the investment community, the future results tend to be underwhelming as capacity constraints and alpha decay start to bite.

By Christian H. Mueller-Glissmann, Global Investment Research, at Goldman Sachs.

At a time when stocks are sliding, it can be hard (and painful) to remember that equities have the best chance of getting investors an attractive return over the longer term. Portfolios have gotten riskier since the beginning of the year, as bonds and stocks have fallen together. But there are ways investors can insulate portfolios until the turbulence subsides, according to Goldman Sachs Research.

By Steven Novakovic is the Managing Director, CAIA Curriculum for CAIA Association. 

By Shawn Gibson CIO, Portfolio Manager & co-Founder of Liquid Strategies, LLC.

EXECUTIVE SUMMARY

• Behavioral finance has a significant impact on both the short-term and long-term pricing of options

• The flexibility to use options in creative ways has helped to consistently drive options volume higher as more market participants get more comfortable with their use

By William (Bill) J. Kelly, CAIA, CEO of the CAIA Association.

By Christoph Junge, CAIA, Head of Alternative Investments at Velliv Pension & Livsforsikring A/S; Denmark’s third-largest commercial pension company.

By Larry Kim, Managing Director, Portfolio Consultant, Simplify ETFs.

INTRODUCTION
With decades of both passive and active fund performance now in the rearview mirror, the results are unequivocal: active management within fixed income is incredibly compelling, while active management in equities has failed to deliver.

By John L. Bowman, CFA, President of the CAIA Association. 

By Marc Dummer, CAIA, CIMA® - Managing Director & Client Portfolio Manager; May Tong, CFA, Managing Director and Portfolio Manager, Asset Allocation; Jessica Bush, CFA, Portfolio Manager, and Ben Rotenberg, CFA, CAIA, Portfolio Manager at Principal Asset Management.

By Masao Matsuda, PhD, CAIA, FRM, President and CEO of Crossgates Investment and Risk Management.

By John L. Bowman, CFA, President of the CAIA Association. 

In 1806, American Frederic Tudor famously sailed to the French Antilles to sell ice to the Martinique islanders. Having experienced refreshing cold drinks and ice cream during New England summers, he envisioned bringing Long Island Ice Teas and Cookies and Cream decadence to the much more sweltering Caribbean climate. 

By Rush Harvey, CMT, CAIA, Director of Private Capital Advisory at Raymond James.

I left the limited partner (“LP”) seat in April 2022 to join the Private Capital Advisory (“PCA”) team at Raymond James (“RJ”) and have received the questions below weekly since from both LPs and General Partners (“GPs”):

By David Berns, PhD, CIO & Cofounder of Simplify.

Introduction