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OCTOBER 2019

Quality and "The Middle Way" of Investing

Erick Rawlings, managing director, research, delves into the idea of quality investing. Rawlings contextualizes the underlying thesis by comparing it to the more well-defined styles of value and growth with hypothetical scenarios.

OCTOBER 2019

Debating the Likelihood of an Economic Recession, Interest Rake Hike, and Inflation Acceleration

As we enter 4Q19, managing director Doug Cohen revisits his predicted probabilities from 1Q19 for the likelihood of an economic recession, a Fed interest rate hike, and inflation acceleration in 2019. Did Doug’s forecasts hold true?

SEPTEMBER 2019

Capitalizing Culture As An Asset

In an industry focused on developing variant perceptions, most investors tend to create variance through interpretations of quantifiable metrics—brushing off intangible factors as immaterial to financial success. Alex Chown, Research Associate, states that through this approach, it’s common for investors to overlook the affect the impact culture has on the directional success or failure of an organization—potentially giving an advantage to those that do.
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WHITE PAPERS


SEPTEMBER 2019

Choosing the Right Asset Mix: Guidance for Individuals with New Wealth Who Have Access to Private Illiquid Investments

Using an Athena-constructed Monte Carlo simulation model, the paper reviews financial outcomes for different asset mixes over a 40-year investment period. While a strategy with some allocation to private investments can produce more favorable results, the allocation should be balanced with a complementary portfolio of liquid investments, as well as life insurance, in order to ensure sufficient liquidity both during lifetime and at death.

JANUARY 2018

Investing in Gender Equality

A practitioner’s perspective on gender lens investing and the construction of gender inclusive investment portfolios

JUNE 2017

Alice's Adventures in Volatility-land

Managing portfolios according to Modern Portfolio Theory directs us to find investment portfolios with the highest level of return for a given level of risk. In this paper we examine the nuances of volatility and risk measurement to better inform decision-making in investment portfolios.
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MARKET INSIGHTS & ANALYSIS


OCTOBER 2019

Market Update - 3Q19

In this quarter's Market Outlook, the proverbial "wall of worry" grew taller. Sentiment can be attributed to the decline of global manufacturing, negative yielding debt, an inverted US yield curve, and geopolitical risks. However, 3Q earnings in the US have exhibited a better-than-expected start, and US/China trade may have taken a small step toward a partial resolution.

AUGUST 2019

Interim Market Update - 3Q19

This quarter's Interim Market Update holds an uncertain outlook as investor sentiment has skewed negatively in the past few weeks. We maintain our overall neutral view across asset classes, with a slight preference for cash given the flattest yield curve since 2007. The interim third quarter also brings a rise of geopolitical pressure, reflected in second quarter US earnings increases.

JULY 2019

Market Update - 2Q19

Today's capital market landscape has investors operating in uncertain terrain. The inverted yield curve and the decline in 10-Year US Treasury yields from over 3% as recently as last December to under 2% earlier this month are clear recession warning signs. Along those lines, quintessential safe haven gold was the best performer among major assets in 2Q19. Meanwhile, US equities have surged by more than 25% since their Christmas Eve low and virtually every major asset class is comfortably in the black so far this year.
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LANDSCAPE REVIEWS


JULY 2019

Securitization Revisited

In recent months, global central banks have raised concerns regarding the rise in issuance and risk characteristics of the bank loan and collateralized loan obligation (CLO) markets. Regulators have questioned whether there are meaningful parallels between CLOs and mortgage-backed collateralized debt obligations (CDOs) that were at the root of the 2008 Global Financial Crisis. The Research team at Athena Capital analyzed this correlation in our latest landscape review, Securitization Revisited.

JULY 2018

Financial Inclusion in Emerging and Frontier Markets

Financial inclusion is, today, one of the most popular investment themes among impact investors, in part because it has a long track record dating back to the emergence of the modern microfinance movement in the 1970s. Over the past 10 years, the field has shifted away from an emphasis on microcredit and towards the broader notion of financial inclusion. Athena Capital's landscape review examines the role for private capital within financial inclusion, the potential for meaningful social impact from investment activity, and the available investment strategies.

APRIL 2018

Evaluating Potential China Trade Tariffs

The escalating trade rhetoric between the US and China has recently garnered headlines as the countries have announced or enacted tariffs. We believe these actions mark a shift in the trade relationship between the US and China—from one of tolerance to one of engagement.
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