Services Tags: Investment Consulting

Marquette Speaking at Titan Investors 2025 Chicago Institutional Active Exchange 3/26

On Wednesday, April 26, Greg Leonberger, FSA, EA, MAAA, FCA and Frank Valle, CFA, CAIA will be speaking at Titan Investors’ Chicago Institutional Active Exchange.

Greg will be moderating the Asset Allocation Panel – Institutional Portfolio Construction in a Dynamic Market Environment and Frank will be moderating the Economic Outlook Panel – Megatrends in a Transforming World & Investing for Resiliency at the event, which will bring together leading institutional asset allocators from the region for a full day of educational panels and roundtable discussions.

Titan Investors is a boutique consulting firm that connects asset allocators and investment managers to share ideas, build relationships, and drive business in a focused environment. For more information, visit their website.

The Market Doesn’t Care

With the election less than two weeks away, polls indicate a very tight race not only for president but for control of the House and Senate as well. Given that margins in some of the swing states are likely to be razor thin, final election results will not be determined until several days after November 5th. There is no debate that the candidates and their expected policies are vastly different, but as investors, should we care who wins? Does the market care?

In this edition, we examine a variety of historical data cuts to determine what market impacts might be expected based on the outcomes of this year’s elections.

3Q 2024 Market Insights

This video is a recording of a live webinar held October 23 by Marquette’s research team analyzing the third quarter of 2024 across the economy and various asset classes and themes we’ll be monitoring over the remainder of the year.

Our quarterly Market Insights series examines the primary asset classes we cover for clients including the U.S. economy, fixed income, U.S. and non-U.S. equities, hedge funds, real assets, and private markets, with commentary by our research analysts and directors.

Sign up for research alerts to be invited to future webinars and notified when we publish new videos.

If you have any questions, please send our team an email.

Are You Ready for Some Fixed Income?

As the leaves change to autumn and the authors cheer on their Fighting Leathernecks, fall is the perfect time for investors to reassess their fixed income portfolios. Fixed income is a hybrid security that offers both offensive and defensive properties. Much like a good football team, a fixed income portfolio needs to combine a strong offense with a solid defense.

Some strategies provide more offensive characteristics while others are more defensive. Portfolios with too much offense act like the Greatest Show on Turf. They do well when the economy is strong, but falter in down markets. Conversely, a fixed income portfolio that is overly reliant on defensive strategies will do well in a risk-off environment but will struggle in a strong economy like the Super Bowl Shufflin’ ’85 Bears.

While those were great teams, they were not a dynasty that stood up to the test of time. To build an all-weather fixed income portfolio that will perform in multiple market environments, an investor needs to balance offense and defense.
Fixed income has three primary objectives: income, diversification, and liquidity. Income, or yield, is what an investor is paid for loaning money to another entity. Fixed income helps to diversify portfolios primarily through duration. When risk assets are selling off, interest rates are generally falling. Duration is what drives fixed income prices higher in such scenarios. Finally, fixed income assets can be a source of liquidity. The weight of these qualities is dependent on if the strategy is more offensive- or defensive-minded.

This white paper outlines offensive and defensive fixed income characteristics and strategies and considerations for investors when building a “gameplan” for their fixed income allocation.

Evan Frazier Speaking at Institutional Investor Central Sub-Advisory Roundtable 11/19

On Tuesday, November 19, Evan Frazier, CFA, CAIA will be speaking at the 3rd Annual Central Sub-Advisory Roundtable hosted by Institutional Investor in Chicago.

Evan will be leading a think tank discussion entitled, “A Peek at Future Interest Rate Environments” with several investment professionals.

Through expert-led panel discussions, presentations, guest speakers, and live market research, the roundtable will bring together leading participants in the sub-advisory landscape to assess how the investment objectives of institutions are changing and how firms that offer sub-advised strategies can respond to these needs. For more information, please visit the event website.

Keep Your Eye on the Ball

When it comes to baseball, successful hitters have little trouble hitting the ball when they know what pitch is coming. But when pitchers can vary the speed as well as the spin and curve of the ball, hitting becomes exponentially more difficult. An effective curveball can make even the most accomplished hitter look feeble.

As we look at the second half of 2024, we are reminding our clients to “keep their eye on the ball.” Indeed, the first half of the year has been pretty “hittable” as far as returns are concerned, with the majority of asset classes positive through June 30. However, curveballs such as Fed policy, equity index concentration, exchange rates, and a capricious election could quickly flip the script and send investors back to the dugout shaking their heads.

With that said, here is our scouting report for the second half of the year, organized by asset class. We share not only “down the middle” themes but also the curveballs that could flummox performance. A well-prepared investor is no different than a well-prepared baseball player: Insight and realistic expectations provide the foundation for a successful season!

Luis Sierra Speaking at New America Alliance Chicago Allocators Connection Summit 10/29

On Tuesday, October 29, Luis Sierra, CFA will be speaking at New America Alliance’s Chicago Roadshow, Allocators Connection Summit.

Luis will be judging a session entitled, “The Elevator Pitch,” described as follows: Six managers representing various strategies deliver a 5-minute elevator pitch to a panel of allocators, who then provide feedback on both the pitch and pre-submitted marketing materials. He will also be joining a panel entitled, “Navigating Key Metrics and Macroeconomic Headwinds: A Consultant and Family Office Guide for Emerging Private Equity and Venture Managers,” described as follows: In an era marked by economic uncertainty and evolving market dynamics, this session brings together leading consultants and fund of funds managers to address the pressing challenges faced by emerging private equity and venture capital managers. Our expert panelists will provide actionable strategies for navigating fundraising hurdles, optimizing portfolio performance, and meeting the expectations of limited partners (LPs) in today’s competitive landscape.

Founded in 1999, the New America Alliance is comprised of a 501(c)6 and a 501(c)3 national organization committed to building on American Latino success to forge a stronger America. NAA leadership and members leverage their influence to increase capital access for women and minority-owned firms, and to accelerate diverse leadership in entrepreneurship, corporate America, and public service. For more information, please visit their website.

2024 Halftime Market Insights

This video is a recording of a live webinar held July 23 by Marquette’s research team analyzing the first half of 2024 across the economy and various asset classes and themes we’ll be monitoring over the remainder of the year.

Our quarterly Market Insights series examines the primary asset classes we cover for clients including the U.S. economy, fixed income, U.S. and non-U.S. equities, hedge funds, real assets, and private markets, with commentary by our research analysts and directors.

Sign up for research alerts to be invited to future webinars and notified when we publish new videos.

If you have any questions, please send our team an email.

What Does Elevated Index Concentration Mean for Active U.S. Equity Managers?

Indexing has risen in popularity over the last decade, particularly for U.S. equity investors. The fees are lower and indexing is perceived as less risky, with investors primarily seeking beta exposure to the market. However, these indices have evolved against an ever-changing economic and financial market backdrop. As a result, several unintended structural issues have emerged, particularly related to concentration risk. Understanding this evolution and how it could alter the overall exposures within a broader portfolio is critical, as these indices are not static. Notably, the composition of some indices alongside the increase in passive capital has created headwinds for active managers and helps to explain recent performance challenges.

This newsletter examines the progression of passive management, how and why U.S. equity index concentration has increased in recent years, and the effects and risks investors need be aware of across the market capitalization spectrum.