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Kristofer Kwait

The Sustainability Conundrum

Posted by Deborah Spalding, Mark J.P. Anson, John Delano, Kristofer Kwait on Feb 12, 2020

Topic: Responsible Investing

Sustainable investing, sometimes called environmental, social, and governance (ESG) investing, has been a hotly contested topic for decades, an the debate continues with both supporters and naysayers drawing battle lines across the social divide. Do ESG intitiatives add value to an investment portfolio? Subtract from it? Are they neutral, but with the potential to be valuable?

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Tactical Allocation: Winning Strategy or a Fool’s Game?

Posted by Deborah Spalding, Kristofer Kwait on Oct 4, 2019

Topic: Asset Allocation | Investment Strategy | Risk Management

Institutional investors overseeing long-term pools of capital typically define their strategic asset allocation with specific targets and bands or ranges...

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Investment Manager Fees Part II: Creating Alignment

Posted by Kristofer Kwait on Jun 17, 2019

Topic: Industry Knowledge

A favorable fee arrangement should make sense and foster positive outcomes for both our clients and managers. One approach might be to pay for...

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Investment Manager Fees: Out of Sight, Out of Mind

Posted by John Delano, Kristofer Kwait on May 22, 2019

Topic: Industry Knowledge

One of the most pressing questions facing fiduciaries is that of investment management fees. We think it is a healthy and necessary discussion...

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Wage Inflation: Is it Different This Time?

Posted by Ryan Driscoll, Kristofer Kwait on Jul 13, 2018

Topic: Market Commentary

The Federal Reserve Governors have been waiting patiently for a meaningful jump in inflation to validate the removal of historically low interest rates that laid the foundation for the economic recovery since the financial crisis. And . . . while The Fed continues to wait . . .

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Strong Signals Support the Fed’s Path Forward

Posted by Ryan Driscoll, Kristofer Kwait on Jun 15, 2018

Topic: Industry Knowledge | Market Commentary

Ultimately, the decision to increase rates was unanimous as the vote was 8-0. Federal Reserve officials raised interest rates for the second time this year and upgraded their forecast to four total increases in 2018, as unemployment fell and inflation exceeded their targets faster than previously projected.

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Inflation Expectations are Rising. How Can Investors Protect Portfolios?

Posted by Ivo C. Nenin, Kristofer Kwait on May 14, 2018

Topic: Investment Strategy | Real Assets | Spending Policy

In March, capital markets entered their tenth year of post-crisis recovery. For diversified portfolios, these have been some of the most profitable times, characterized by strong returns, positive correlations between equities and bonds and robust illiquidity premiums from private programs . . .

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The Fed Stays the Course

Posted by Ryan Driscoll, Kristofer Kwait on Mar 22, 2018

Topic: Industry Knowledge | Market Commentary

An increase in the Fed Funds rate at the March FOMC meeting was a forgone conclusion. The biggest unknown was whether the new chairman of the Federal Reserve, Jay Powell, would continue the cautious approach of his predecessor, Janet Yellen, or choose a slightly more aggressive stance in removing the accommodative policies of the last ten years.

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Volatility Returns to
the Equity Markets

Posted by Kristofer Kwait, Steve Snyder on Feb 7, 2018

Topic: Equities | Investment Strategy

During the course of the recent selloff in the equity markets and spike in volatility, many of our investors have questioned whether this significant drop experienced over a few trading days portends the beginning of a bear market, or a shorter term correction (albeit a violent one).

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Active Management Fatigue and What to Do About It

Posted by John Delano, Jess Gaspar, Kristofer Kwait on Jun 14, 2016

Topic: Asset Allocation | Investment Strategy

Active management has struggled for several years, raising questions about whether active management can ever outperform again. Traditional active manager style tilts, like value and size, have detracted from performance in recent periods. Over the long run, these tilts tend to mean revert around positive trends, creating reasons to be optimistic about active management’s prospects. On the other hand, only 30 percent of managers truly deliver positive alpha after controlling for typical active management style tilts.

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