Member Educational Materials 2014-2016

2020  2019    2018   2017   2014-2016


Man – Man vs. Machine

December 2016
Comparing Discretionary and Systematic Hedge Fund Performance

This study compares the performance of discretionary versus systematic hedge funds, split into macro and equity strategies, using data from 1996-2014. Some inestor suggest that systematic strategies perfrom worse , have returns more easily explained by risk factors and more homogenenous than their discretionary countrparts.

download_norm_03


Q4 2016 Market Review & Outlook

Q4 2016
Morgan Creek Capital Management

The first time I heard the name Babson was in 1980 when I was a senior in high school in Weston, Connecticut (serendipitous given some of the themes of this letter and coinciding with Reagan’s election). I was on a bus with my soccer team headed to Massachusetts to play weekend scrimmages against Babson College and Brandeis University. Our coach had convinced our parents that this was a college tour and showcase event where the college coaches would be evaluating us as potential recruits.

download_norm_03


Investing Wisely and Staying Wealthy

2016
American Timberlands Company, LLC

The U.S. stock market is near all-time highs, real government bond rates are essentially zero, the U.S. Fed is out of bullets and desperate to tighten, politics are preventing any fiscal stimulus, and China’s growth is slowing. Wise investors are seeking strategies which have downside protection, provide modest uncorrelated returns through cycles, and include opportunities to generate additional returns. Focusing on the macro-economic trends, identifying the best strategies within those trends, and utilizing experienced managers to take advantage of them should preserve and grow wealth.

download_norm_03


Documents for Medical Preparedness

2016
Chilton Trust Company

When considering estate planning documents, it is important to include advance health-care directives so your family and loved ones have the appropriate guidance to make the desired and responsible health-care decisions should you no longer be able to yourself. While it is difficult to think about injury or falling ill, none of us are immune to medical risks. Further, you have the right to direct your medical care. As such, having the right documentation to define and address your health-care needs and desires is imperative to ensure your caretakers have clear guidelines.

download_norm_03


Private Debt: The Opportunity for Diversification with Illiquid Assets

2016
TIAA Global Asset Management

Private debt is emerging as a potential solution for institutional investors confronting low interest yields and structural changes in fixed-income markets. Investors are turning to alternative credit in search of higher yield, better diversification, and lower risk than offered by traditional asset classes.

download_norm_03


Transparency and Sophisticated Simplicity in Wealth Management

2016
Chilton Trust Company

The investment management landscape continues to evolve and become more multifaceted with intricate investment options and solutions for investors. Yet, as the wealth management industry has become more complex, transparency – as it pertains to underlying investments, terms and fees – has rapidly declined. In 2008, stress and volatility in the markets tested the wealth management industry; many investors awoke to the harsh realization that their investments were not liquid or they could not immediately access their funds.

download_norm_03


Active ESG investing — The smart choice for bond investors

November 2016
BlueBay Asset Management LLP

Environmental, social and governance (ESG) investing involves investment strategies that proactively incorporate ESG or sustainability factors within the investment process.

download_norm_03


What If “Animal Spirits” Kick In?

November 28, 2016
Willis Investment Counsel

… due to the characteristic of human nature, a large proportion of our positive activities depend on spontaneous optimism rather than on a mathematical expectation … most of our decisions to do something positive … can only be taken as a result of animal spirits – of a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities. John Maynard Keynes, 1936.

download_norm_03


Targeted Rate of Return and Asset Allocation in a Low Return World

November 8, 2016
Willis Investment Counsel

…we believe a targeted return of inflation plus 4.00% may be incongruent with a preference for relatively stable portfolio values …we explain why we believe returns going forward could be lower than historical averages, and why targeted returns need to be revisited to reflect that possibility…

download_norm_03


VantagePoint: Fourth Quarter 2016

October 2016
Cambridge Associates

Bond yields have reached extreme levels this year amid soft growth, continued central bank purchases, and negative interest rate policies, dragging down prospective returns for a variety of asset classes. Capital markets are unlikely to deliver most investors’ long-term return objectives over the next five to ten years.

download_norm_03


Family Office Bulletin: Personal Excess Liability Insurance

October 2016
Chilton Trust Company

With all insurance, one wants to make sure that the essential levels and coverages are in place, not necessarily excessive levels and coverages. Excess liability insurance, commonly known as “umbrella” insurance, is somewhat of a misnomer and could easily be renamed “sleep at night coverage”. This coverage is a safeguard from which all individuals, whether considered high net worth or not, can benefit from and we have recommended adding an umbrella arrangement to many clients’ current insurance profiles. Most individuals consider themselves careful investors when it comes to considering risk. These same individuals typically have general property and liability policies, but not everyone has an umbrella policy. Umbrellas are reasonably priced and should be worth a second look. Umbrella policies can be offered and acquired through professional organizations (such as trade or business affiliations), your current place of employment and your current insurance carrier/broker.

download_norm_03


What Happens to Stocks When Interest Rates Rise?

October 28, 2016
Willis Investment Counsel

Despite conventional wisdom to the contrary, historically stocks have not necessarily performed poorly when interest rates rise.

download_norm_03


Asset Allocation Navigator

Q3 2016
BlueBay Asset Management

Brexit – the UK’s referendum vote to leave the EU – is a local difficulty but a global event for interest rates, further fuelling the search for yield. In our view an environment of lower for longer interest rates and positive, albeit mediocre, global economic growth and corporate earnings is favourable for positive-yielding assets, notably credit and emerging market debt. The search for yield is likely to continue to dominate markets, but the possibility of further episodes of volatility should not be ignored. US short-term interest rates are vulnerable to Federal Reserve rate hikes being priced back in, but not sufficiently to drive longer-term yields violently higher. We are fully invested, but our focus is on credit rather than term premium, with a bias for higher quality yielding assets and nimble portfolios.

download_norm_03


Equity and Bond Crisis Alpha

September 2016
Man

In this paper we seek to shed light on these questions by studying trend-following strategies from 1960 onwards. Importantly, this includes the pre-1985 period, which shows a starkly different picture compared to post-1985. Over the 1960-1985 period bonds experienced negative excess returns on average, while stock markets provided modest positive average excess returns and quite frequent drawdowns.

download_norm_03


Rupture

September 28, 2016
Angeles Investment Advisors

The political experts were remarkably accurate in last week’s UK referendum on continuing to remain in the European Union, projecting a vote of 52%/48%. The actual final tally was 51.9% to 48.1%, so chalk one up to the pundits. Well, the numbers were spot on, but the sign was the wrong way: instead of a narrow victory to remain, the voters chose to exit. The Bloomsbury Crowd [a group of Cambridge-educated intellectuals who gathered in Bloomsbury, London in the early part of the 20th century to discuss and affirm the importance of themselves] was shocked (shocked!).

download_norm_03


Alts Are the Antidote to Active Management’s Hard Times

September 23, 2016
Partners Capital

A number of forces converged in the first half of 2016 to produce widespread underperformance among many highly respected active asset managers. While active management has been challenged since the financial crisis, recent losses appear to be a distinctly new phenomenon, by virtue of their sheer scale and concentration with managers that had defied gravity with superior performance over the past few years. For many institutional investors, including elite foundations and endowments that are now reporting their fiscal years ending June 30, 2016, such severe underperformance has many questioning whether they should abandon active management entirely for passive strategies.

download_norm_03


Janet Yellen Is Your Friend

September 16, 2016
Angeles Investment Advisors

I have not met Janet Yellen, but she seems like a perfectly friendly person. Yet, for some reason, investors seem to panic whenever she hints that the Fed is discussing whether and when to lift interest rates from close-to-zero to a smidgen above zero. That instinctive panic is not rational.

download_norm_03


Understanding the World of Impact Investing

September 2016
TRUSTS & ESTATES

In a world facing challenges related to a changing climate and stark social inequalities, the concept of impact investing is compelling, powerful and frequently isunderstood. As a field of practice, impact investing builds on the long history of social investing and is rapidly evolving with an infusion of new ideas and participants.

download_norm_03


Liquidity Management Solutions: A Changing Landscape

July 27, 2016
TriState Capital

There is a “new normal” in cash management. Banks and money market mutual funds are changing the way they treat deposits. If you are a steward of liquidity, you must get ahead of the perfect regulatory storm that may make traditional cash management and deposit strategies obsolete.

download_norm_03


Reality Comes Into Focus

August 2016
Lampe, Conway & Co.

Perhaps you’ve heard this one: An optimist, a pessimist and an optometrist start discussing the high-yield bond market… The optimist points to transactions like Dell’s $60+ billion acquisition and financing of EMC and exclaims “all right with the world, full steam ahead!” The pessimist shakes his head and warns “the Fed will need to raise rates to try to save off an economic calamity from 7 years of ZIRP.”

download_norm_03


Things That Make You Go Hmmm…

July 7, 2016
Grant Williams

https://www.youtube.com/watch?v=CLQsT9BPHpg


Family Office Bulletin: Workers’ Compensation

June 2016
Chilton Trust Company

Chilton Trust’s Family Office Bulletin seeks to provide general commentary and guidelines on timely and relevant topics for clients and their families. While each situation is expected to vary based on each client’s individual situation and needs, the topics and discussion herein are intended to encourage thoughtful analysis. A Chilton Trust representative is always available if the observations or guidelines presented in this piece warrant additional attention and a follow up conversation regarding your particular circumstances or situation. Our mission is first and foremost to keep you informed and in a position where you can understand and evaluate your next steps.

download_norm_03


EXPLORING ESG: A Practitioner’s Perspective

June 2016
BlackRock

Investors consider a variety of factors when determining the long-term value of a company. Public records such as annual reports and earnings statements have served as the traditional source of this information, helping investors discern the effects of macroeconomic and company-specific issues on valuations. However, with the amount of and access to information expanding significantly in recent years, more and more investors have new types of data to glean investment insights.

download_norm_03


Simple Math: As Debt Refinancing Falls, Defaults Rise

June 2016
Lampe, Conway & Co.

For smaller, leveraged companies the absolute level of interested rates has now taken a back seat to the general lack of economic growth. A pervasive lack of revenue growth is limiting smaller companies’ ability to grow into their nnow enlarged and leveraged balance sheets. As a result, investors are becoming increasingly risk averse and wothdrawing support for these smaller, leveraged companies.

download_norm_03


CIO Perspective: The Art of Unlearning

June 9, 2016
Weiss

Historically, I’ve written papers when I felt there was something having to do with the markets or the economy that, in my opinion, differed from the consensus. After all, why write about your view if they cannot add value to people’s thoughts by providing another angle? Since writing the Hagler vs. Leonard: A Unanimous Descision for Emerging Markets paper back in February on my faith in emerging markets, much has changed in the markets.

download_norm_03


Other Voices: The psychological dimension: assessing character in manager due diligence

June 8, 2016
Partners Capital

As an Outsourced Investment Office acting for endowments and foundations, and ultra-high-net-worth families in Europe, North America and Asia, we advise our clients on their total investment programs, including asset allocation and portfolio construction. Most importantly, we provide access to what we believe are best-of-breed asset managers. A core focus of our firm is the identification of managers with true competitive advantages who will perform well in client portfolios over the long-term. Of increasing importance to our due diligence process is the assessment of the ethics, motivation and character of the senior leadership at an asset manager and, in the ase of activist managers, often of the CEOs of the companies they back with concentrated bets.

download_norm_03


Investment Principles for Endowment and Foundation Funds

June 2016
Willis Investment Counsel

Portfolio complexity does not equal superior performance. Complexity often increases risk. Therefore, employ only the degree of complexity that is required; and no more.

download_norm_03


The Evolution of Sustainability Investing

May 2016
Dimensional Fund Advisors LP

With investors increasingly concerned about the potential environmental effects of certain business practices, many individuals and institutions are asking how they an align their environmental views and personal values with their investment decisions.

download_norm_03


The Preferred Market: An Overview

May 2016
Chilton Trust Company

Chilton Trust Company CIO’s Richard Chilton and Timothy Horan recommend that traditional municipal fixed income investors with the appropriate risk appetite should allocate between 15-35% of their fixed income asset allocation to the preferred (a.k.a. “hybrid”) security market.

download_norm_03


Why Invest in Emerging Markets Now?

May 2016
RWC

On price to book, emerging markets are trading at 1.4x book value which is just above levels seen during the Global Financial Crisis of 2008/2009 (1.3x) at a time when investors feared a global meltdown. One would have to assume we have a crisis similar to the 1997 Asian and 1998 Russian crises which drove valuations to below 1.0x book value; we don’t believe emerging markets are set for this type of crisis. In terms of other valuation metrics, if you look at markets such as Russia, Brazil and China H-shares, these are trading at price earnings multiples in the 6-8x range, with many of these economies experiencing slow growth or even recession.

download_norm_03


Floating Oil

May 24, 2016
Angeles Investment Advisors

Oil has had a nice recovery this year (see graph for Brent, YTD), up about 18% to over $48/barrel today. Of course, this is still well below the +$100/barrel we saw from 2011 through most of 2014, so will oil continue its climb higher?

download_norm_03


In the Triangle

May 23, 2016
Angeles Investment Advisors

Complexity makes investing so challenging. Unlike the pure sciences, there are no hard truths in investing, no discoverable axioms that determine outcomes with 100% confidence. At best, we can speak in probabilities, but even these probabilities come with large standard errors. Investing demands humility, even from the best of us.

download_norm_03


The Reality of Hangovers

February 2016
Lampe, Conway & Co.

For the past few weeks, investors in the leveraged finance markets have witnessed a stunning bounce in proces of high-yield bonds and leveraged loans, with HY fund flows have rebounded, approacing upwards of $5bn per week. While investors may be breathing a collective sigh of relief that the selloff has moderated, the question remaines whether this is a recovery or a pause.

download_norm_03


Angeles Investment Advisors – Commentary 2Q16

Q2 2016
Angeles Investment Advisors

University of Chicago is known for its excellent academics, not so much for its athletic prowess. But that wasn’t always the case. One hundred years ago, the Maroons1 were the premier football team in the land, winning multiple national championships, and led by the legendary coach Amos Alonzo Stagg.

download_norm_03


QUARTERLY OUTLOOK – Q2 2016

Q2 2016
Edge Capital

If you closed your eyes during the quarter, you missed one heck of a ride. The culmination of fears surrounding a Fed policy mistake, a crash landing in China, financial industry destruction by negative interest rates, and energy prices without a floor led to one of the worst starts to a calendar year in equity markets, only to bounce back off no real news at all.

download_norm_03


Market Review & Outlook

Q1 2016
MEKETA FIDUCIARY MANAGEMENT

While most global asset classes finished the first quarter of 2016 little changed from where they began the
year, this muted performance belies the tremendous volatility experienced over the past three months.

download_norm_03


Q1 2016 Market Review & Outlook

Q1 2016
Morgan Creek Capital Management

In April, nearly 400 years to the day after Shakespeare died, we lost another truly remarkable artist, Prince. In his career, Prince sold more than 100 million records, won seven Grammy Awards, a Golden Globe and an Academy Award. Prince was recognized by Rolling Stone magazine as the 27th most influential artist of the Rock Era and he was inducted into the Rock & Roll Hall of Fame in 2004. Prince Rogers Nelson was born in 1958 in Minnesota and grew up in a musical household where both parents were jazz performers. He was named after his father who performed under the stage name, Prince Rogers.

download_norm_03


CAPITAL MARKETS QUARTERLY 1Q16

Q1 2016
HIGHLAND ASSOCIATES

Today’s economic landscape is ripe with challenges resulting from diverging monetary policies and growth trajectories. We continue to grapple with low growth and low rates for a long time.

download_norm_03


Commentary 1Q16

Q1 2016
Angeles Investment Advisors

Some of the most impressive accomplishments in human history were born of vanity, some rose from sheer curiosity, some were driven by commerce, others by necessity. More than 4,500 years ago the Pharaoh Khufu (“Cheops” as the Greeks called him) built (rather, had slaves build) the Great Pyramid in Giza to ensconce his remains. A simple tombstone would not do for the great Pharaoh. For nearly four millennia it was the tallest structure in the world, the only of the Seven Wonders of the ancient world that has survived. Its ratio of perimeter-to-height is almost precisely 2π, suggesting that the Great Pyramid was not slapped together, but rather well-planned.

download_norm_03


Portfolio Strategy: Pro-Active “Diversification” and Beta Vulnerability

February 18, 2016
Morgan Stanley

Based upon Cambridge Associates reports, large US endowments continued their “diversification”, with the weighting of alternatives rising by 22% from 31% in FY 2000 to 55% in FY2015.This massiveshift was “funded” largely by reduced weightings in US equity and fixed income.

download_norm_03


Composition of GDP & Growth Dynamics in Frontier Markets

February 2016
RWC

The frontier markets classification includes some of the fastest growing, most populated and least integrated economies in the world and, importantly, some of the most undervalued equity markets.

download_norm_03


2016.01 Broyhill Book Club

January 2016
Broyhill Asset Management, LLC

Last year, I made a conscious effort to spend less time in front of the screens. With the help of Goodreads, I set a goal of reading one book per week. What follows is certainly not a list of the “One Hundred Best of all educative literature in the world.” It is simply one man’s attempt at shifting his lifestyle away from online diversions and optimizing his return on time invested. As it turns out, substituting television (the occasional Netflix binge permitted) and email for an Amazon Kindle has extraordinary implications for mindfulness and clarity of thought.

download_norm_03


GEM – China Thought Piece

January 2016
RWC

China’s GDP growth has seen a secular decline over the past several years from over 10% to the 6-7% range (Chart 1). The moderation in growth has been a welcome development, as it has been accompanied by a healthy rebalancing in GDP composition and move towards a more sustainable and inclusive growth dynamics (Chart 2).

download_norm_03


Archived Resources

Capturing Alpha From Non-Traditional Sources  November 2015 RBC Global Asset Management

Adverse Active Alpha: Adding Value Through Manager Selection  September 29, 2015 Morgan Stanley

Q2 2015 Market Review and Outlook  Second Quarter 2015 Morgan Creek Capital Management

Drop (in the bucket)  September 15, 2015 Angeles Investment Advisors

Jobs  September 4, 2015 Angeles Investment Advisors

Revisiting the Case for the Endowment Model  June 2015 Athena Capital Advisors

Party Like It’s 1999?  June 12, 2015 Angeles Investment Advisors

ACG – Global Fixed Income Market Update  August 2015 ACG

Global Macro Outlook  August 31st, 2015 Morgan Stanley Research

The 5-Minute Strategy Workout  August 20th, 2015 Morgan Stanley

ACTIVE MANAGEMENT AND EMERGING MARKETS EQUITIES: Together They Work  June 30, 2015 RBC Global Asset Management

Wages  May 1, 2015 Angeles Investment Advisors

Part Two: Portfolio Management — How Exposure to Real Estate May Enhance Returns.  May 2015 American Assets Capital Advisers

Valuation  April 21, 2015 Angeles Investment Advisors

Opportunities More Compelling than Direct Lending  April 2015 Silver Creek

Negative Yields  March 19, 2015 Angeles Investment Advisors

Rebalancings  March 16, 2015 Angeles Investment Advisors

Effective Endowment Governance: What Savvy Nonprofits Are Doing  February 2015 Athena Capital Advisors

Crude-awakening: Why oils self-correcting nature may soon dismantle the bear case  February 2015 Wellington

DoDiligence™ – Reinventing The Due Diligence Process  2015 Uncorrelated, LLC

MCCM 1Q 2015 Market Outlook  Q1 2015 Morgan Creek

Research – Smart beta  January 2015 Dimensional Fund Advisors LP

Introducing the Impact Investing Benchmark  2015 Cambridge Associates LLC

British Origins of US Endowment Model  2015 CFA Society North Carolina

Private Debt Market Outlook – 2015  2015 White Oak Global Advisors

TIAA-CREF  Q4 2014 TIAA-CREF

Global Portfolios  Q3 2014 CFA Society North Carolina

Exotic Beta Revisited  September 2014 CFA Institute

Dust off The Bassinet Leighton Tendencies  August 27, 2014 Leighton Strader

How to Walk Through the Field…… Leighton Tendencies  September 12, 2014 Leighton Strader

Identifying Opportunities in a Challenging Short Selling Environment  September 2014 Fidelity

Values-Based and Impact Investing: An Introduction  February 2014 Athena Capital Advisors

Portfolio Whiteboard Project whitepaper  September 2013 Uncorrelated

Shah Capital Urges Changes at China Yuchai International  June 18, 2013 MoneyBeat – WSJ

Revisiting the Winners’ Game  June 2013 Balentine

Power Play: The Calm Before the Storm  October 2012 Venor Capital

Shah Capital – You’re missing the great China value trade  August 15, 2012 Absolute Return – Alpha

The Case for Cash  July 2012 Balentine

The Merits of Dividend Investing  January 15, 2012 Altrius

Reality Vs. Delusion: What did those marketers just say?  Leighton Strader

Investment Knowledge When You Need It  Solovis

Cutting Through the Confusion of OCIO Fees  Strategic Investment Group

OCIO Performance Measurement and Analysis  Strategic Investment Group

Take Control Through Outsourcing  Strategic Investment Group

The Art and Science of Manager Termination  Strategic Investment Group

Investment LAB Report-Energy Revolution  Uncorrelated

 

Member Educational Materials

 

2020  2019    2018   2017   2014-2016