The Impact of Brexit on Private Equity in the U.K. and Europe
While the March 29 deadline for the United Kingdom’s departure from the European Union (EU) has been extended to April 12, there is still no clear direction on its implementation, and even its timing remains uncertain. To better understand the ramifications, Callan conducted an extensive review of private equity activity since the June 2016 referendum […]
Hot Markets Go Cold Turkey
In chilling markets, the mix of volatile prices and tightening liquidity became too hot for many hedge funds to handle. And beset by negative betas in both traditional and alternative markets, all of the Callan Multi-Asset Class (MAC) Style Groups struggled in the fourth quarter’s risk-off mode.
In 4th Quarter, Private Equity Downshifted Amid Volatile Markets
4Q18 Review The number of transactions fell modestly for 2018 and in the fourth quarter, reflecting less certainty in more volatile—and trickier—capital markets. However, dollar volumes associated primarily with fundraising, as well as venture capital (VC) investments and exits, increased. Overall activity remains near record levels. Fundraising: In 2018, private equity partnerships holding final closes raised […]
Puttin’ on the Ritz … With Open Protocol
View Jim’s Paper Hedge funds and other multi-asset class (MAC) strategies with long and short exposures are a tough act to follow…at least for many fiduciaries investing in these strategies. To showcase their portfolios, managers often use a proprietary language that fits their unique strategy. Unfortunately, they then don’t sound like each other, making one […]
Hedge Funds Grind Ahead Amid Tightening Liquidity
The market environment for hedge funds offered conflicting signals in the third quarter. Despite weakening economic strength abroad, particularly in China, the U.S. economy marched stridently ahead, still energized by recent tax cuts and falling unemployment. Better-than-expected corporate earnings pushed up U.S. stocks, despite a marginally stronger dollar. Anticipating inflationary risks, the Federal Reserve pressed […]
What You Need to Know About Private Equity 2Q18
This blog post from Callan’s Private Equity Consulting Group provides a high-level summary of private equity activity in the second quarter through all the investment stages, from fundraising to exits, as well as performance data across a range of market cycles.
Structured Fixed Income vs. Derivatives: The Key Differences
In order to provide clarity about what can be an alphabet soup of names (CMBS? VIX?), this blog post provides an overview of how Callan categorizes two types of investment vehicles: structured fixed income products and derivatives.
Trade Spat Rains on Risk Parade
After celebrating U.S. tax cuts and deficit spending in the prior quarter, risk seekers tempered their buying enthusiasm in the second quarter when a global trade war threatened to crash the party. Casting shade on the growing but increasingly fragile global recovery, Trump’s posturing against China and other countries with U.S. trade surpluses caused non-U.S. […]
Making Cents of the Irrational With Options
View PDF Derivatives such as options enable investors to exchange specific market risks in their portfolios in much the same way homeowners who need fire insurance can purchase it from companies that pool risks to provide that coverage. In its basic form, an option contract gives the purchaser the right to buy (or “call”) or […]
Hyperactive Private Equity Markets Merit Steady Pacing
View PDF With volatility returning to the public markets in the first quarter, private equity activity slowed somewhat but remained brisk in absolute terms. Fundraising declined from prior periods. Company investments and exits trended slightly lower, although venture capital funding rose. Callan recommends vigilance in commitment pacing during this frothy market, in which the absolute […]