Does Gold Belong in Your Portfolio?

Does Gold Belong in Your Portfolio?

March 2018

Should investors have an allocation to gold? The ambiguous movements in the price of gold are challenging to understand; however, amid the price gain in gold over the last two decades, the question of whether an investor should own gold is even more difficult to answer. The attached Insights seeks to address this question and also details how investors might gain exposure to gold.

 

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Rocaton’s Public Equity Investment Philosophy

February 2018

In a market environment characterized by richer valuations and lower yields, investors may feel the propensity to shift to riskier investments to generate higher returns. Rocaton believes that a well-structured public equity program has played and will continue to play an important role in the ability to meet longer-term objectives. In this edition of Insights, we outline our long-standing public equity investment philosophy, predicated on prudent use of active risk. Above all, Rocaton remains focused on creating customized solutions across our client base and we welcome more targeted discussions on how best to adapt our equity investment philosophy to your specific program.

 

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Tax Reform: A Guide for Investors

January 2018

The Tax Cuts and Jobs Acts is the most comprehensive piece of tax legislation since 1986. While most of the focus from market participants has been on the bill’s impact on the public equity market and individuals, other segments, such as fixed income markets, will be impacted.  The attached Insights outlines the potential impact on corporations and certain asset classes.

 

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2018 Capital Market Outlook

December 2017

Our annual Market Outlook provides a look ahead to 2018 and provides a review of our themes from this past year.  As you will notice, many of our themes this year reference the elevated valuations across most capital markets.

 

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Technological Change and its Impact on Financial Markets

December 2017
We believe technological change is one of the most impactful secular trends that will create new industries and eliminate others, impact productivity, and change our daily lives. Very rapid technological change has the potential to result in extreme investment outcomes (positive or negative) over long time horizons across many different sectors and asset classes. In the attached Insights, we outline the risk that technological change presents to investors and suggest ways to potentially mitigate this risk.
 

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What is MiFID II?

November 2017
In 2007, the Markets in Financial Instruments Directive (“MiFID”) was adopted to harmonize financial regulations and create a single, cross-border securities market in Europe. A revised set of regulations, known as “MiFID II”, will go into effect on January 3, 2018. In this edition of Insights, we outline some key tenets of MiFID II and explore potential considerations for asset managers and clients including: 1) the cost impact of MiFID II to asset managers, 2) the potential for fee savings for clients, and 3) potential unforeseen changes to the market landscape after regulatory adoption.

 

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What’s Your Exposure to China?

November 2017
We believe China has risen to become one of the most significant drivers of returns and risk for virtually all asset classes. While investors might assume their exposure to China is quite low, we argue that a significant portion of an investor’s portfolio is likely to be influenced by Chinese actions. The attached Insights details the direct exposure investors have to China, but more importantly, outlines the indirect exposure investors have to China and the implications for portfolios.

 

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The State of the Hedge Fund Industry

September 2017

Post-financial crisis, hedge fund strategies have faced increased scrutiny and negative press due to high fees and poor performance relative to public markets.  While some high-profile firms have closed and some institutional investors have reduced or abandoned hedge funds, hedge fund strategies still play a role in some investor portfolios.  The attached Insights reviews the current state of the hedge fund industry and provides more detail on our preferred approach to using hedge fund strategies within investor portfolios.

 

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Venezuela: An Unfolding Crisis

September 2017

U.S. investors that allocate to emerging market debt may have exposure to Venezuelan debt.  Emerging market debt managers’ active positioning in Venezuela has had and will continue to have a meaningful impact on managers’ relative performance and tracking error in the near-term.  The attached Insights provides additional context on the developments in Venezuela and the potential impact on emerging market debt strategies.

 

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Factor Investing

August 2017

Factor investing has gained in popularity in recent years due to the availability of factor products. We believe there are several practical ways in which investors can make use of the expanding set of factor strategies. Specifically, we believe factors can be used in two ways: 1) top-down asset allocation portfolio construction and 2) bottom-up manager/strategy selection. The attached Insights seeks to define factor investing and provide a framework which investors can use to incorporate factor strategies into portfolios.

 

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