Investors should focus on identifying valuation opportunities. We currently see value opportunities in U.S. quality growth stocks, which have the added benefit of providing long-term equity performance combined with insulation from overall market volatility.
We believe the reason many bond investors are maintaining high balances in low-yielding money markets right now is because they've been scared into thinking the value of their investment will decline sharply if interest rates rise. They may well be right. They may be wrong. We do not know with certainty. However, we do know with certainty that approach has been dead wrong over the last 12-18 months and it may continue to be the wrong strategy for another 12-18 months.
When implemented responsibly, a successful foreign exchange hedging strategy can go beyond mitigating foreign exchange risk to actually improving the bottom line of a global business, according to a paper from SVB Capital. The author addresses the impact of currency exchange rates as well as best practices for implementing a hedging strategy.
This report analyses, from an investment perspective, the features of ecological /organic agriculture that make it an attractive option for those considering investment in agriculture/farmland and particularly for those investors with an SRI/ESG understanding.
Credit Suisse researchers compare styles that have worked since the Feb. 5 market low with those that have worked up to the mid-January peak. Low P/E and low P/B have been two of the few styles to outperform in both periods. Researchers screen for outperform-rated stocks that trade on a P/E and P/B discount to their sector and the market and have earnings revisions better than their sector and the market.
Coller Capital's annual survey tracks private equity trends in emerging markets and investors' plans related to those markets. Among this year's findings: Investors expect their new commitment to emerging market private equity to accelerate over the next two years, and most of these investors expect this sector to outperform private equity as a whole.
Hammond Associates puts empirical studies of asset allocation in perspective, starting with the 1988 study by Brinson, Hood and Beebower and working through subsequent research efforts. The author believes these often quoted and sometimes misinterpreted studies are limited in scope and the types of assets they explore and, thus, do not provide useful guidance for all asset allocation situations.
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.
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.