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The authors examine the current banking environment and opine on pricing and other trends that should lead to an unprecedented level of bank transactions during the next several years. They discuss the factors that should create the need and opportunity as well as present the challenges that have slowed substantial consolidation activity.

The recent Facebook IPO announcement has had a positive impact on sentiment. Perhaps that sentiment will catch on in Europe. However, it seems that gloom still weighs heavier there than here. Private equity firms will most likely continue to wait for the right time to exit companies, and if the equity markets are as volatile this year as they were ...

International developed equities, mostly European, are trading below their 75th percentile and have occasionally flirted with their 90th percentile level in the past year. Such discounts can lead to relatively strong future returns but can require a good amount of patience.

We do not dispute the consensus view that growth may remain sluggish in the United States in the near term. However, that does not imply that equities and credit investments are dead money. Equity investors have often prospered during blasé periods of economic growth.

Emerging market stocks have historically provided differentiated performance compared to other important asset classes. Along with providing the impetus for growth in a long-term portfolio, including emerging market stocks as part of an asset mix may help improve the risk-reward ratio of a portfolio because of its inherent diversification benefits.

While the market rally in 2012 has been most supportive for directional trading and especially for emerging market managers, we remain only cautiously optimistic on these strategies since markets may soon be due for a correction. Given the prevailing uncertainties with regard to the economic outlook, we continue to prefer tactical trading strategie...

Rental growth is likely to slow in many markets. However, low vacancies and limited construction pipelines as well as the fairly robust global economy should limit any downside in most cities. Regionally, we believe direct commercial real estate in Australia, China, Germany, France, Canada and selected U.S. and Latin American markets should outperf...

The author discusses the re-emergence of domestic energy production, illustrates the evolving opportunities and risks brought about by this re-emergence for the United States and briefly touches on potential investment opportunities. This paper has a particular focus on natural gas, the most significant source of domestic energy.

Since 2008, commodities have been highly correlated with equities and other risk assets. As a result, many investors have begun to question whether the diversification benefit of investing in commodities has evaporated. A new report, however, finds that the recent spike in correlation is very much in line with the historical pattern around large ma...

Modern portfolio theory, while highly useful in illustrating the relative tradeoffs between current and prospective portfolio allocations, should not be used as the primary framework for constructing portfolios for wealthy families. Investors are better served, the authors say, by a goals-based approach that recognizes multiple levels of risk toler...

We continue to recommend a focus on the middle of the risk spectrum and investments with better prospective risk-reward. Included in this space are higher quality equities (with lower economic sensitivity), mortgage and corporate bonds (both investment grade and some high yield debt), global bonds, options-based strategies, and absolute return stra...

The financial crisis that began almost five years ago is still with us, and we are still dominated by the events unfolding in Europe. What are some of the root causes of the crisis, and what is the future likely to hold? This white paper examines the evolution of the financial crisis and offers advice on how investors might best navigate the comple...

Income-generating vehicles make a lot of sense in this environment. Last year, a key part of our message was to focus on yield-oriented strategies, ranging from high-yield equity managers to energy MLPs to floating rate debt and emerging market bonds. We believe that adding to the enhanced yield strategy through a position in non-investment-grade d...

The extended slump in the U.S. housing market has created a significant opportunity for patient investors. Given the imbalance between prices (weak) and rents (strong), investors willing to participate in a buy-hold-lease strategy have the opportunity to garner attractive current income on stabilized net capitalization rates exceeding 6%, with the ...

There are many reasons to seek non-correlated investments, even if, like fastastical creatures, they are hard to find. These investments can be highly beneficial to sophisticated investment portfolios, as they provide a great deal of diversification for the dollar.