Kristofer Kwait

Wage Inflation: Is it Different This Time?

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

Topic: Industry Knowledge | 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: Asset Allocation | Industry Knowledge | Investment Strategy | Market Commentary | Real Assets

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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Hedge Fund Strategies 2.0

Posted by Caroline Greer, Kristofer Kwait on Oct 10, 2016

Topic: Asset Allocation | Hedge Funds | Investment Strategy

The old mantra of using hedge funds for downside protection and upside participation hasn't worked. During this webcast, we examine the why and the how of hedge funds - why invest in them and how to invest in them effectively within institutional portfolios.

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Equity Performance Review: Fiscal Year 2016

Posted by Keith Luke, Mark J.P. Anson, Kristofer Kwait on Jul 21, 2016

Topic: Asset Allocation | Equities | Investment Strategy

Our latest webcast reviews equity performance for fiscal year 2016 and the positioning for the portfolio going forward.

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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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Hedge Funds:
How Many (or Few) Does it Take?

Posted by John Delano, Kristofer Kwait on Apr 8, 2016

Topic: Hedge Funds

Hedge Funds: How Many (or Few) Does it Take? It’s straightforward to get an answer to that question, at least superficially: draw at random from a manager universe, build hypothetical portfolios with the selected managers, track performance, repeat thousands of times, and based on the average result, arrive at an optimal portfolio size.

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Size: It’s Complicated

Posted by John Delano, Kristofer Kwait on Jan 14, 2016

Topic: Hedge Funds | Investment Strategy

AUM among hedge funds has always been characteristically top-heavy, with the majority of capital in the hands of a relatively small number of managers. While the hedge fund universe has expanded from a few hundred in the mid-1990s to several thousand today, investors have voted in large numbers for what amounts to a handful of those managers.

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Smart money, crowded trades?

Posted by John Delano, Kristofer Kwait on Aug 17, 2014

Topic: Hedge Funds | Industry Knowledge

Approaches to stock selection vary widely across the hedge fund universe, even among managers practicing the same strategy. Valuation, potential catalysts, time horizons and technical factors based on price history all influence decisions to own a stock, both in terms of names and position sizing and hedging. A name that is attractive to one manager may leave another unmoved, or escape consideration altogether.

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Chasing Winners: The Appeal and the Risk

Posted by John Delano, Kristofer Kwait on Aug 6, 2014

Topic: Asset Allocation | Hedge Funds | Investment Strategy

For investors selecting managers to hire, the draw of managers that have produced outsized recent winners can be powerful. While such a strategy can work in the long-term, this strategy is implicitly based on the manager’s ability to track market movements across investment environments.

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