Revisiting the Discussion About Futures-Based Portfolio Overlays

Lately, we have been advising our clients about issues that fall into two distinct categories: What can I do today with what I already own? What can I start doing now to give me a better set of tools in the future? To the first category, liquidity has been constrained and transaction costs prohibitively high […]

Rebalancing in a Time of Volatility

With the sharp decline in equities worldwide, many institutional investors find themselves overweight fixed income and underweight equities. In many cases, strategic policy ranges set by the long-term planning process have been breached. Given all of the uncertainty and market volatility, many of our clients are wondering what to do next. Should the portfolio be […]

Untangling the Gordian Knot of ‘Cash Drag’

Modern portfolios are increasingly complicated as they have expanded beyond stocks and bonds. The management of those portfolios—and the attendant illiquidity that can come with alternative investments—has many asset owners staring at a Gordian knot very much in need of untangling. With Alexandrian efficiency, a futures-based cash overlay can slice through many of the issues complicating cash […]

Rebalance Your Portfolio, or Let It Ride?

With the return of market volatility, investors are asking whether it is an appropriate time to rebalance their portfolios. Our view: Yes! This sometimes-overlooked procedural discipline is extremely important. Asset allocation may be the most important decision fund sponsors make as fiduciaries for their investment program. The key to the success of an investment program […]