Resource Search

Private markets investments remain poised to play an increasingly important role in the portfolios of individual and family investors seeking the compelling long-term outperformance and diversification characteristics of the asset class. Understanding the basics of private markets investments and their construction is the first step toward the successful implementation within an existing portfolio.

Global investors need to have an open mind. At any given time, many countries and markets around the world may appear to be rife with risks and problems, and yet in many cases, these countries may also offer sources of return that may not be evident at first glance. The best global managers are the ones that probe below the surface and find those sources of return.

There is not a lot of data to call upon to glean the performance of direct private investments; however, based on a large, robust study focused on institutional investors, family offices should know that the performance of this type of investing has been mixed at best. In this paper, the second in a three-part series, we examine the peformance of direct investments relative to both private fund structures and the public markets.

While hosting a daily morning meeting, Paul Chew at Brown Advisory was asked: What are the most important lessons you learned from managing through the technology bubble in 2000-2001 and the financial crisis of 2008-2009? Circling back to the question and to his early career when he was an equity research analyst, Paul shares the three most important lessons he learned and the invaluable wisdom and guidance he received from the senior leaders at his firm.

Professional investors have long touted the benefits of investing globally in order to expand the opportunity set and diversify the portfolio beyond home country borders. However, investors have largely overlooked a more attractive subset of international equities: small capitalization stocks. Their returns have significantly outpaced large cap international stocks over long time frames with only slightly more risk. There is a case for why small cap international stocks should have a place in every global investment portfolio.

After an extended period of isolation, China underwent an economic reform by opening up to the international community and foreign investment. The country moved fast to catch up with the developed world, and the new way forward—“socialism with Chinese characteristics”—has made China more vital, creative, and economically free. Yet, when it comes to investment, major institutional investors in the developed countries, especially in the North America, are very much underweight China in their portfolios, directly or indirectly.

There is a growing acknowledgment that government and philanthropic sources of capital will likely fall far short of what is needed in the coming decades to solve the pressing social and environmental challenges of our time. Hence, many investors are eager to find ways to generate positive impact through their investments.

The past couple of years have proven to be banner years for private equity and merger and acquisition activity, with no signs of slow down in 2019. With cash on hand to invest and the increase in Representation and Warranty Insurance policies, forecasters expect these trends to continue. Podcast host Michael Cohen is joined by Luca Salvi to discuss the current state of the M&A and private equity trends in the United States.

As an investor with assets primarily in the United States, you are probably weary of following the trials and tribulations of the Brexit drama in the United Kingdom. Since the British electorate voted back in June 2016 to withdraw from the European Union, negotiators for both sides have worked feverishly to address the will of the people without undue damage to economic activity and global trade. As the deadline looms, should we be worried about the economic fallout from a so-called “hard Brexit”?

There is much wisdom about the folly of prediction. But the process of thinking about variant perceptions and alternative scenarios is valuable to our investment process. With a nod to Byron Wien, the former Morgan Stanley and Blackstone Strategist who originated the annual 10 Surprises idea, we begin with the first potential surprise for 2019: #ActionsBeatWords.