In an era of globalization, corporations may continually find themselves exposed to potential abuses. Thoughtful investors, who recognize the social and business implications of a company's human rights policies, will have a better understanding of both the risks and opportunities to which a company may be exposed.
Direct investment in private companies can deliver returns far exceeding those of private equity and other asset classes while also providing attractive diversification and increased control. The potential for outsize returns, however, comes with increased risk, meaning investors must carefully assess the various financial, organizational and manag...
Four basic hedging techniques – long/short, covered call, buy/write indexing and index put options – represent varying levels of risk but, used appropriately, may reduce portfolio volatility and smooth overall returns. Defensive hedging, techniques designed to protect against loss, may even be well-suited for cautious or conservative investors.
It is at the turning points, both market highs and lows, that investors can either increase or forfeit large portions of their portfolios. These are also the times when they can make the wrong decisions. But with the right frame of mind and a willingness to do what others won't, investors can take advantage of the opportunities created by volatile ...
Structured notes essentially replicate two types of financial instruments: zero-coupon bond and option(s). As a result, in the creation of structured notes, such financial instruments, their costs and several other factors contribute to the overall pricing of the notes.
One of the newest types of funds specializes in replicating the beta of hedge funds, a traditionally non-correlated asset class. By seeking to replicate the beta of the broad universe of hedge funds, these funds can bring a level of non-correlated returns to any portfolio allocation.
Post-crisis core portfolios may benefit from some revisions to traditional asset allocation. Each potential component of the new core (hedged equity, global fixed income and risk-managed alternatives) includes an enhancement that may offer greater risk management better suited to today's environment.
When stocks are volatile and bonds offer historically low yields, investors may seek to generate positive returns by investing in assets that are either driving inflation or offer protection during turbulent economic times. These real assets have historically outperformed stocks and bonds during periods of accelerating inflation and provided additi...
Once an initial portfolio has been constructed, it is critical that the asset allocation be monitored and rebalanced in a systematic and disciplined manner. Systematic rebalancing not only helps maintain a consistent and appropriate level of risk but, in many cases, also may enhance the return of a portfolio.
The underlying TALF investment thesis is compelling, but for many individuals the return potential may be too small given the illiquidity and leverage. This paper examines the pros and cons of TALF investments, enabling individuals to make an informed decision about whether this particular investment opportunity is right for them.
This paper provides some tips for creative giving to help donors meet the high level of need in their communities and continue to have impact even with reduced dollars available for charitable giving. While these strategies can be applied during the current economic environment, they stand the test of time and can be built upon as the economy and g...
Meeting significant charitable goals efficiently creates a disproportionate need for the characteristics inherent in liquid, public securities. Increasing the allocation to liquid asset classes from 29% to 75% on a tax-managed basis can generate comparable returns to the endowment model after taxes while maintaining the flexibility needed to handle...
A contingency plan helps ensure that a single or multi-family office is prepared to deal with a disaster effectively, minimizing any financial loss, reputational damage, irreparable damage to fundamental operations and legal liability. Such a plan should address continuance imperatives in three fundamental areas: personnel performance, business pro...
Effective collections security is the application of general security practices centering on concentricity, redundancy and reliability. Ultra-wealthy collectors are wise to examine the relevant work experience of prospective vendors to determine both their credentials and their ability to protect valuable items.
Protecting assets is an ever-present reality in the information age. From the courtesy checks from a credit card company to Gmail, Twitter and Facebook, there is an abundance of fertile ground for financial crime. The good news is that there are a multitude of practical tips and safeguards everyone can implement to preserve their identity and prope...