In this 12th annual survey, the focus was on the back office areas and internal fund operations. The results highlight other trends and key insights in the hedge fund industry: growth in assets and funds; an opportunity for smaller, newer managers; investors boosting their hedge fund allocations; how traditional hedge funds are coping with cryptocurrencies; and the fee models in a post-‘two and twenty’ world.
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Overall, the results of the 2022 10-year capital market assumptions are mixed depending on the asset class when compared to last year’s assumptions as the global recovery gains traction. We see weaker equity market returns due to slowing growth rates and stretched valuations. Fixed income asset class returns will once again be extremely limited given how low global bond yields are today.
As outlined in the 2022 Capital Markets Assumptions, long-term return expectations for traditional assets remain muted. Alternative investment solutions may offer an opportunity to increase portfolio returns by taking advantage of the remarkable post-pandemic economic evolution in a targeted way through public and private markets.
The sustainable and impact investing industry continues to scale, affording investors an increased level of influence on public and private markets. The most pronounced investor opportunity is expected to be in climate change and the future of work, two areas with significant implications for investment portfolios and for society. The industry is likely to be on the cusp of even larger adoption in the year ahead, as new regulations and fiduciary guidance seek to clarify and standardize a still nascent industry.
U.S. inflation reached an annualized rate of 7.0% in December 2021, its fastest pace in nearly four decades. Even the core price index, which excludes the volatile categories of food and energy, climbed to 5.5%. The question is whether inflation will peak in the coming months, as balance sheets are drained and supply chain pressures abate, or whether inflation has become a more permanent fixture in the U.S. economy.
Each new year brings with it new tax-savings opportunities. This year, a list of strategies and tips to consider in your tax planning are provided, including charts showing the federal estate and gift tax exemptions and exclusions for 2022.
Without proper planning, digital assets could be lost. For executors, a challenge is often just determining whether digital assets are in the decedent's estate, and then determining the powers and terms for accessing and administering them on the beneficiaries' behalf. An inventory checklist of the broad-based digital footprint is provided as a beginning step in protecting and planning for these assets.
A Net Income with Makeup Charitable Remainder Unitrust (NIMCRUT) is a unique wealth planning strategy and is an effective means to maximize after-tax returns, as well as benefiting charities in certain circumstances common to high net-worth families and individuals. This article outlines some ideal circumstances and illustrates the significant difference this strategy can produce to sustain wealth while also benefiting a donor's chosen charity upon death.
As the owner of a closely held business, proper planning will ensure that, if something happens to you, your business interest is transferred according to wishes. Having a buy-sell agreement in place is only half the battle. Funding your agreement ensures that there is money available to purchase a departing owner’s business interest in the event of death, disability, retirement, or other circumstance. When considering and comparing the various funding options available, life insurance is often ideal.
The trend of private equity (PE) firms seeking high returns in health care has been in full bloom for more than a decade. But whereas previously PE was focused on a top-down approach of buying hospitals and health systems, that focus has begun to shift toward less-costly smaller specialty groups and physician practices. With increased segmentation across the health care industry, the PE involvement in core hospital service is growing and shifting.