News & Announcements
It is important to play games. We view gameplay as imperative for children because it helps with cognitive and physical development. Competitions teach children patience, social skills, negotiation, strategy, confidence and how to win and lose. Games are also important for adults. As we age, these activities help relieve stress, maintain brain function, stimulate creativity and help us feel young and energetic. In addition, games enhance our professional development.
It is human nature to focus on the present. At any point in time, the next decision is often the most significant one. Yet, planning for our future needs is of paramount importance. Mark Twain stated that one should “plan for the future because that’s where you are going to spend the rest of your life.” Congress supports this notion by declaring the third week of October as National Retirement Security Week (NRSW). As a whole, the US could prepare better for retirement.
Asset management is a harder business today than it was a generation ago. While different types of institutions have different investment goals, they are all facing a paradigm shift. Institutions express their investment goals by designing portfolios predicated upon reaching and exceeding a target rate of return.
Recently, a leading investment news publication featured a story about how many private equity managers (GPs) gain advantage over their investors, known as limited partners (LPs), through preferential fees and GP-friendly terms. The article cites a commonly held opinion in the institutional investment community that sovereign wealth funds, endowments, foundations and high-net-worth individuals are the preferred investors in these private equity vehicles as they are less sensitive to investment terms and transparency issues. The subtext to this view is that many in the investment world believe public pension funds are not the smartest investors and incapable of fully embracing the endowment model that relies on investment strategies such as private equity. Implicit in this assertion is that public pension funds should “wise-up.” We should accept any terms in the quest for high investment returns.
The capital market correction in early 2016 has produced legions of prognosticators. It is stunning to read about the number of investors who knew what was going to happen. Yet, the vast majority of these same people have a long market bias and are subject to market directionality. In other words, they have not walked the talk. selective
Investors must take the long view in a volatile investment climate. It is an understatement to say that the first two weeks of 2016 have been challenging for investors.