To be able to build a portfolio of managers that meets their objectives, investors must have a clear understanding of their rationale for integrating environmental, social and corporate governance, or ESG, factors in the in the investment decision-making process, according to a new white paper from Cambridge Associates.
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Babson Capital explores distressed debt investing, describing the bankruptcy process, the role of debtor-in-possession facilities and the importance of valuation in understanding the investment opportunity. The report also outlines three distressed debt investment strategies based on the level of involvement: discount value, activist and control. While written for a U.S. audience, this report contains information relevant to investors globally.
If the market continues to transition to a more fundamentals-driven recovery, investment managers – including Shariah managers - with a track record of strong security selection capabilities may be in a better position than other managers to navigate such an environment, according to SEI Investments. Managers who follow strong due diligence processes and stringent risk management practices may be better positioned to make more consistent and less risky returns for their investors.
President's Letter: February 2010 Bernardi Securities I am convinced more than ever that the "perfect" bond market hedge does not exist. Many, many investors lost money over the last 18 months on "hedged" bond investments and swaps. Some would have seen their "hedged" investments wiped out entirely had not the government rescued certain financial institutions.
This paper from AQR Capital Management helps demystify managed futures, one of the few investments that performed well in 2008. The authors describe how to construct a simple version of this strategy, illustrate how this simple version performs in various market environments, and show how managed futures can be used to enhance the risk-return profiles of traditional portfolios.
The recent economic crisis resulted not only in a significant loss of wealth, but also in a loss of trust. This article addresses the psychology of that loss of trust and presents a constructive response to it for family offices and their clients: Create standards for investing that can help avoid a re-occurrence of recent events.
Hotels can be lucrative investments, but they also can be disastrous investments. As an operating business with high capital costs and many employees, hotels have unique obligations and liabilities that potential investors must assess carefully. In this paper, HVS Hotel Management lays out the key issues for investors to consider as part of the due diligence process.
For individuals who believe private equity offers compelling portfolio diversification and historical outperformance of the public equity markets the key is to find a way to control the J-Curve to reduce its depth yet retain the upside. One solution is mezzanine funds, says TAC Group.
Collectibles often satisfy an emotional need, but they also may offer benefits similar to those of financial assets. Noting the ability of collections to deliver superior investment returns while helping to diversify a portfolio, Robert W. Baird & Company makes the case for treating private collections like other assets.
Researchers for AIG Investments explore the challenges of estimating future private equity exposure and address central questions commonly faced by new and experienced private equity investors alike. They conclude that private equity investors need to give as much consideration to a strategic commitment plan to achieve allocation targets as they do to setting the targets themselves.