Michael Fitzsimmons

"We analyze the [equity] announcement risk premia on the US market between September 1987 and March 2023 and find that the market index exhibits average excess returns of 8.3 bps for macroeconomic announcement days." https://lnkd.in/ec9nRHxN

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Novogradac released a report last week highlighting how value still remains in Opportunity Zone investments, despite the approaching 2026 deferral deadline on capital gains. Looking ahead to 2025, experts predict a potential uptick in OZ activity, with Alex Flachsbart of Opportunity Alabama noting that “people who are investing now are doing it for the 10-year hold benefits.” On the topic of the Opportunity Zones Transparency, Extension and Improvement Act, Flachsbart remains hopeful that OZ reform will be included in 2025 tax legislation. 

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Moelis is pleased to act as Exclusive Financial Advisor to Fortress Investment Group, a leading, highly diversified global investment manager, on its acquisitions of Gyptech, Infra Pipe Solutions Ltd., and Texas Hydraulics, Inc. #DealAdvisory Press release: https://bit.ly/4eZzYpY Fortress Investment Group Infra Pipe Solutions Ltd. Gyptech Texas Hydraulics, Inc. Press release: https://bit.ly/4eXfVbG Press release: https://bit.ly/3CRsbND

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All areas of commerce are benefitting from data analysis, and our industry is no different. And when it comes to hard data, Henry Schwartz is among the very best. Good, punchy interview here fresh from the OIC on many hot topics in the listed options space, including the rise of the "ProTail" customer using options strategically. #Options #OptionsStrategies #Cboe #SPX #VIX #XSP #OIC #0DTE

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Interesting article from Douglas Appell in Pensions & Investments about the post-ZIRP, “higher for longer” interest rate environment that boils down to advocating for the pursuit of satisfactory investment outcomes that are relevant to asset owners’ actual spending needs and goals, rather than continuing the historically common practice – and expected future folly – of tethering one’s equity beta to that of an equity benchmark whose performance from today’s elevated levels is widely expected to be sluggish and insufficient to fund minimum liabilities (ie: payout rates, actuarial hurdles, spending goals, etc.).   Quoting the inimitable Ben Phillips, “In that world, the relevant benchmark becomes the client’s required cash flows.”   Fresh perspectives and new ideas are warranted. Satisfactory outcomes not benchmarks.

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As the DOW Jones closed above 40,000 for the first time in its history, Olaolu Aganga recently joined the team on CNBC’s Closing Bell to discuss our playbook in alternatives and current strategic and tactical asset allocation views. Through what many have described as a “supercycle” election year, we see large asset owners seeking out stability in longer-term allocations to alternatives – including private credit and private equity. Typically marked to market at a slower rate, exposure to alternatives can provide important stability through more volatile periods. Balancing strategic and tactical decision making across portfolios is all about assessing risk and return relative to time horizon. Strategically, we’ve been neutral on Europe for some time, but tactically, we’ve been looking internationally to capture opportunities across emerging markets, most recently in China where we see valuation distortion. Join the Mercer Investments team and Olaolu Aganga LIVE in Nashville for the Global Investment Forum June 10-12: bit.ly/3Vm71yw

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Executive Pay is seeing changes due to the "anti-woke" backlash against ESG. The following Bloomberg article cites data analysis by Farient Advisors LLC. Bloomberg spoke with our ESG Leader Brian Bueno to get his take on what might really be happening. Brian says, "Companies and boards are especially trying to be careful when they're setting these goals. It's possible we could see movement away from diversity or movement towards broader measures of human capital or workforce-related measures." https://lnkd.in/gbFsgUzM #execcomp #corpgov #ESG

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Putting July's Volatility into Perspective In today's video Observations and Expectations, Virtus Senior Managing Director and Chief Market Strategist, Joe Terranova, provides context on the elevated volatility in the month of July. #ObservationsandExpectations

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In our most recent Quarterly Letter we discuss the Florida Land Boom of the 1920s, why value managers "cheat", and the importance of an antifragile investment strategy

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How is #NuveenInfrastructure’s clean energy team reducing carbon emissions while generating critical clean power globally? Read the 2023 clean energy infrastructure sustainability report, which includes a detailed overview of avoided emissions across our equity and credit strategies, how we incorporate physical climate risk considerations into our investments, as well as how we aim to protect marine life during offshore wind construction.

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Moelis is pleased to act as Exclusive Financial Advisor to Fortress Investment Group, a leading, highly diversified global investment manager, on its acquisitions of Gyptech, Infra Pipe Solutions Ltd., and Texas Hydraulics, Inc. #DealAdvisory Press release: https://bit.ly/3CQ18T2 Press release: https://bit.ly/3Vdy7aj Press release: https://bit.ly/3V9enEr

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Recently, Aptus Capital Advisors discussed the challenges traditional bonds face with the persistence of high shelter costs driving inflation. As we navigate a shifting economic landscape, John Luke Tyner, CFA advises against a passive "T-bill and Chill" investment approach; instead, he advocates more aggressive equity allocations to keep up with rising living costs. Check out this post to better understand the current bond market and tips for how to adjust financial strategies accordingly. https://lnkd.in/eYQcHgpk

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If you think portfolio risk management is just about diversification, think again. This article sheds light on some surprising strategies that challenge common perceptions. Here are some thought-provoking takeaways: - Did you know that reducing the number of investments in a portfolio can sometimes actually decrease risks? It's all about strategic selection. - Contrary to popular belief, actively managing risk doesn't necessarily mean more frequent trading. In fact, a hands-off approach can be a smart move. - One of the key points discussed is the importance of understanding the correlation between investments, a factor often overlooked in risk management strategies. - Asymmetric risk and the role it plays in portfolio management is explored, offering a fresh perspective on balancing risk and return. - Ever considered tail risk hedging? This article dives into this lesser-known strategy that can enhance risk management effectiveness. Share your thoughts and feelings on these unconventional risk management strategies. https://lnkd.in/ecgSpH93

There is a lot of talk about the PE industry not delivering the exits they promised. PitchBook succinctly put it with the title “Behind the J-curve” in its recent in-depth analysis of distribution activity in private market funds. Another side of that story, particularly relevant for secondary buyers like us, is that many private market funds hold their assets at seemingly inflated valuations. TVPI numbers look great for most funds, but they can’t monetize their holdings anywhere near their current NAV, indicating their estimate of “fair market value” is way too optimistic. There is always a market, the price may just not be where you wish it. To a large degree, the reluctance to exit companies results from having them marked too high. Assets were aggressively written up to look good in the short-term, impressing LPs with “paper gains” to raise the next, much bigger fund. #secondaries #privatemarkets

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Capital Group and KKR have taken the next step in their effort to build a new category of hybrid public-private investment solutions for U.S. financial advisors and their clients. Registration statements have been filed with the SEC for two public-private fixed income funds expected to launch in the first half of 2025, pending regulatory approval. Learn more here: https://bit.ly/4hmn3AZ #CapitalGroup

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Today, I published LVS Advisory's Q3 2024 investor letter which discusses our recent investment performance and an investment in Medpace $MEDP. https://lnkd.in/e67V2EZh

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It's an exciting time for GP stakes, both with newer entrants to the space and investors increasingly seeking differentiated access across private markets. Great insights from Steve Moseley on the benefits that the asset class presents for investor portfolios as well as the importance of long-term alignment with our partners.

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