Portfolio
Public-private allocation guidance, capital market assumptions, and strategic insight to help investors build forward-looking portfolios they can act on and defend.
Despite October’s AI selloff, indices remain resilient thanks to historically high dispersion. We remain bullish, but with barbells across the portfolio. Hedge equity with equity: Overweight Technology and Healthcare. Remain overweight high yield. Downgrade linkers and upgrade nominal bonds. Upgrade tail risk protection to overweight as a hedge against a resumption of the war.
The Total Portfolio Approach stumbles really on one thing: the team. Everyone says it, but nobody has prescribed the fix. We provide three logistical principles that close the gap. And they work for SAA investors too.
History suggests central bank policy determines how bonds behave in recessions, even for high-debt countries. The Fed should be able to cut into a slowdown, making Treasurys an effective equity hedge… for USD-based investors. Foreign investors will see currency depreciation erase their gains.
Higher rates have changed the opportunity set. Overweight High-Yield Credit, both within asset allocation and versus Private Credit. Investors are no longer picking up pennies in front of a steamroller.
Nerves are rising around Data Center financing but most of the fear comes from GPU financing. GPUs are not Data Centers. Data Center collateral is solid, and so are the tenants.
It is that time of year again for our annual Private Equity & Sports report. This year, we examine private capital's entry into college sports. Athletic departments generate significant revenue, but margins are under pressure. Colleges still hold untapped assets that private partners will help monetize.
